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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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