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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)
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Sole Proprietors; Self-Employed; Contractors
APPROVAL
BASIS & REQ
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​In business on 02/15/2020
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Had employees or contractors
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Borrower certifies that
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Current economic conditions necessitate the loan​
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Loan funds will be used to pay salary/wages, mortgage/ lease, and/or utilities
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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
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No Collateral
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No Personal Guarantees
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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)
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Rent & Utilities
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Mortgage Debt Interest
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Anything a regular 7(a) loan can be used for
VIEW THE APPLICATION HERE~
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