The application for the federal government’s Paycheck Protection Program (PPP) has been posted online.
A summary provided by the US Senate Committee on Small Business and Entrepreneurship states that the program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis.
PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between Feb. 15, 2020 and June 30, 2020. This program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020.
While the program is “live” as of today, it is expected that most lenders will be ready to go next week. It is advised that members to go to their own bank and those banks that are already 7(a) lenders, because they will likely be ready to lend under this program faster than other banks. However, all FDIC institutions will be brought into the program in the near future. Members interested in the PPP should apply as early as possible.
Members should review an overview of the PPP from the U.S. Treasury online and Frequently Asked Questions (FAQs) literature from the US Senate Committee on Small Business and Entrepreneurship.