Posted on April 1, 2020 by admin
The Paycheck Protection Program is a federal initiative providing forgivable loans. This program is aimed specifically at small businesses with 500 or fewer employees, including nonprofit entities (including churches), veterans' organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors. Businesses with more than 500 employees are eligible in certain industries.
The program has a total funding level of $349 billion and is administered by the US Department of Treasury. Select banks will start to accept applications Friday, April 3rd. Independent contractors and self-employed individuals can apply Friday, April 10.
You are encouraged to apply as early as you can because of the funding cap.
Participating banks will accept and process applications.
Loan amounts are provided to businesses based on each company's payroll level. For instance, the typical loan amount will be 2.5 times average monthly payroll. During the COVID-19 period, when a company retains employees or rehires them, the principal and interest on loans provided by the program will be forgiven.