On March 31, 2020, the U.S. Department of the Treasury, which is supporting the U.S. Small Business Administration (SBA) in administering the Paycheck Protection Program (PPP), and SBA issued preliminary guidance on the program and made available the form of application. Further guidance, such as additional modifications of the existing SBA affiliation rules for the program relating to whether employees of a related party are counted in the employee count, may be subsequently released.
- Small businesses and sole proprietorships can apply for a PPP loan beginning April 3, 2020, through existing lenders.
- Independent contractors and the self-employed individuals can apply for a PPP loan beginning April 10, 2020, through existing lenders.
For a list of the 100 most active SBA 7(a) lenders, please click here.
New lenders can apply to the SBA for approval to make PPP loans by submitting their applications to [email protected].
The deadline for applying for a PPP loan is June 30, 2020, though you are encouraged to apply as soon as possible as there is a funding cap.
PPP loan terms will be the same for ALL borrowers and are as follows:
- Rate: fixed at 0.50%
- Term: two years
- Loan Payments: All interest and principal payments are deferred for six months. However, interest will accrue during this period
- Prepayment Penalties or Fees: None
- Collateral: None required
- Personal Guarantee: None required
We encourage you to contact your existing lender now to alert them you are interested in applying for a PPP loan.