APRIL 24, 2020: PPP UPDATE
President Trump signed into law the Paycheck Protection Program and Health Care Enhancement Act, which provides additional funding for small businesses affected by the coronavirus pandemic.
The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 AM EDT from approved lenders on behalf of eligible borrowers.
Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan.
APRIL 16, 2020: PPP UPDATE
The Paycheck Protection Program has officially run out of money, effective April 16, 2020, as stated in the Small Business Administration (SBA) website: " The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding". Many businesses were left unfunded or unable to find a bank that would process their application.
Congress is expected to approve additional funding for the program. Below is a summary of the $342 billion dollars approved under the PPP program, in just two weeks.
*As per the SBA's PPP Program report dated 4/16/2020
CARES Act (PL 116-136)
On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide assistance for individuals and businesses affected by the coronavirus pandemic.
Funding options for small businesses:
$350 billion in forgivable loans for small business through the Paycheck Protection Program
Advances on SBA disaster loans that never have to be repaid
Forgiving existing non-disaster SBA loan payments over the next six months
Paycheck Protection Program (PPP)
The CARES Act established the Paycheck Protection Program to give small business access to funds, in the form of loans, to help cover payroll costs and some operating expenses. These loans are issued by approved lenders and are guaranteed by the Small Business Administration (SBA).
Loan payments will be deferred for six months.
No collateral or personal guarantees are required.
Loans will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities. At least 75% of the forgiven amount must have been used for payroll. Forgiveness is based on the employer maintaining employees and salary levels.
Small businesses with 500 or fewer employees (including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors) are eligible. Businesses with more than 500 employees are eligible in certain industries.
The program is open until June 30, 2020.
Apply asap before funds are exhausted.