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According to the Small Business Administration (SBA), the Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for restaurants and other small businesses to keep their workers on the payroll. Key changes to the program were enacted June 5, including:
- Option to extend existing PPP loan to 24 weeks from 8 weeks - Extension of coverage period to Dec. 31 (previously June 30) to bring back all employees - 60% of funds must be applied to payroll expenses (vs. 75%) - Delayed payment of payroll taxes now permitted - 5 year period to repay loan (previously 2 years) - New exemptions for inability to find qualified employees or restore business operations due to COVID-19 n restrictions The Paycheck Protection Program will be available through June 30, 2020. We encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan. |
Who Can Apply
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.
How to Apply
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.
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). 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.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels within 24 weeks.. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. This loan has a maturity of 5 years and a fixed interest rate of 1.0%.
If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.
Other Assistance
In response to the Coronavirus (COVID-19) pandemic, restaurant and other small business owners may be eligible to apply for disaster assistance.
Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
For information on additional Lending options, separate from COVID-19, please click here.
SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please click here.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.
How to Apply
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.
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). 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.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels within 24 weeks.. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. This loan has a maturity of 5 years and a fixed interest rate of 1.0%.
If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.
Other Assistance
In response to the Coronavirus (COVID-19) pandemic, restaurant and other small business owners may be eligible to apply for disaster assistance.
Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
For information on additional Lending options, separate from COVID-19, please click here.
SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please click here.
