You can access immediate funding for your small business through the CARES Act Paycheck Protection Program forgivable loans.
The IRS has released the application and guidelines for small business to immediately access loans for payroll and operating costs. We are here to help you quickly access the information you will need to apply. Consult with your CPA to see if this program is right for you.
But don’t apply just yet! Starting April 3, 2020, small businesses and sole proprietorships can apply for loans under the Paycheck Protection Program. Starting April 10, 2020, independent contractors and self-employed individuals can apply.
What to do if you are interested in a Paycheck Protection Program loan:
We recommend you begin working through the application and collecting supporting materials so you can be among the first in line when the program opens on April 3rd.
We will update you with details on how to pull supporting payroll records and information from your account to complete your application.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
A list of participating lenders can be found at www.sba.gov.
Have specific questions about the loans and eligibility considerations?
The U.S. Chamber of Commerce offers a Coronavirus Emergency Loans Small Business Guide and Checklist that can bring you up to speed.
The SBA has expanded the lender network for this program. Here are their most active 100 lenders.
What is the Small Business Paycheck Protection Program?
The Paycheck Protection Program provides small businesses with funds to pay up to eight weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Fully Forgiven
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll) during the covered period, which is the 8-week period beginning on the date of the origination of a covered loan. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.