THE

PAYCHECK PROTECTION 

PROGRAM

aka "The BUSINESS INTERUPTION LOAN"

APPLICATION OPENS APRIL 3, 2020

FOR SMALL BUSINESSES &

SOLE PROPRIETORS 

APPLICATION OPENS APRIL 10, 2020

FOR INDEPENDENT CONTRACTORS

& SELF-EMPLOYED PERSONS 

SOURCE/

LENDER

Lending through banks, guaranteed by SBA; Apply at Bank

QUALIFYING BUSINESSES

  • Small Businesses (< 500 employees), including franchises

  • 501c Nonprofits (Types: 3 & 19 only)

  • Sole Proprietors; Self-Employed; Contractors

APPROVAL

BASIS & REQ

  • In business on 02/15/2020

  • Had employees or contractors

  • Borrower certifies that

  1. Current economic conditions necessitate the loan​

  2. Loan funds will be used to pay salary/wages, mortgage/ lease, and/or utilities

  3. Borrower has not received another loan for the same expenses

LOAN SIZE &

CALCULATION

Up to 2.5 X the borrower's average monthly

"Payroll Cost" (for the 12 months preceding loan date; for seasonal and newer businesses, alternate calculations are available)

Maximum loan is $10 million

"Payroll Cost" Includes Spending on:

~Income, wages, commissions, tips, independent contractor payments, & similar compensations, up to $100,000 per individual;

~paid out vacation, sick, family, personal, medical, or other leave; 

~provision of health care benefits, including premiums;

~provision of retirement benefits

state & local taxes on compensation of employees

~Outstanding balance of Economic Injury Disaster Loan, if applicable and if borrower desires to refinance/consolidate

*Note that a PPP Loan can be used to refinance an Economic Injury Disaster Loan, however, a Disaster Loan cannot be used to refinance a PPP Loan b/c having another loan such as a PPP makes you ineligible for a Disaster Loan.

INTEREST RATE

& TERM

Interest Rate: 1.00 (latest figure)

Maximum Term: 10 Years

Payments can be deferred 6-12 months

COLLATERAL REQUIREMENTS

  • No Loan Fees

  • No Collateral

  • No Personal Guarantees

  • No Prepayment Penalty

FORGIVENESS OPPORTUNITIES

Forgiveness is based upon the amount of loan funds spent on approved expenses (below) over the first 8 weeks from loan origination. *Business must maintain employee numbers.

An application is required for the forgiveness program, and documentation verifying how the money was spent as well as the maintenance of employee numbers will be needed.

APPROVED

FUND USES

  • Payroll and compensation related expenses (See above Payroll Cost Includes section)

  • Rent & Utilities

  • Mortgage Debt Interest

  • Anything a regular 7(a) loan can be used for

VIEW THE APPLICATION HERE~

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CONTACT US

3425 Pelham Parkway

Pelham, AL 35124

(205) 829-1829

info@harmoncpafirm.com

Fax (205) 829-1199 

​​​​© 2019 by Loren Harmon for Harmon & Associates