Small businesses and sole proprietorships affected by the coronavirus pandemic can apply for loans under the federal Paycheck Protection Program (PPP) beginning this Friday, April 3rd. Treasury urged those in need of funding to apply quickly, noting that the program has a cap and demand is likely to be high. (Starting April 10, independent contractors and self-employed individuals can apply.)
The Department of Treasury has released the Paycheck Protection Program application and supplemental information, all available on their website. You can begin applying for these funds on April 3, 2020.
As a reminder, funds from this program:
• Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, mortgage, rent and utility payments;
• Are 100% forgivable if used for the above purposes; and
• Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including soleproprietors, independent contractors, and other self-employed individuals.
Additional information can be found here – U.S. Chamber of Commerce guide and checklist, on the Treasury website – Treasury PPP overview and on the SBA website – PPP Overview.
You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.
Our knowledge of the program is not comprehensive, and details continue to evolve daily. We recommend you consult with your local participating lender for additional information and questions regarding the application. Of course as we learn information we think would be helpful, we will be in contact.