Congress has extended the Paycheck Protection Program through August 8th, 2020. That means small businesses, through their SBA 7(a) lender can apply for the PPP loans. The goal of the Paycheck Protection Program is to enable businesses to keep their employees on the payroll during the coronavirus crisis, a time when many companies might be laying off or furloughing their employees. Funds from a PPP loan are forgivable, as long as the money is used to cover payroll and other expenses directly related to employees.
The PPP Program is Reopened
Here are details, straight from the SBA’s page on the Paycheck Protection Program:
- “The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.”
- “SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness.”
- You must apply through an SBA 7(a) lender.
- PPP loans have an interest rate of 1%.
- Loans issued prior to June 5 have a maturity of two years. Loans issued after June 5 have a maturity of five years.
- Loan payments will be deferred for six months.
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
Is a PPP Loan Right for Your Business?
If this all seems complicated, and you’re not sure if a PPP loan is right for your business, then give our office a call. We will talk you through the pros and cons of applying for a PPP loan, specifically for your business.
Call our office now at 888-297-3321 for a free review of your situation.