- Loans up to $10 million can be extended to qualifying entities.
- Businesses can apply for an amount up to 2.5X typical monthly payroll.
- Money can be used to pay for fixed costs such as payroll, rent, utilities, etc.
- 75% of money must be used for payroll purposes.
- Remaining 25% of capital can be used for other approved fixed costs.
- Loan will be forgiven/converted into a grant at the end of 8-week period following loan application.
- Lenders will verify that borrowers qualify for forgiveness.
- Portions of the PPP loan that were not forgiven will have a 2-year maturity date and 1.0% interest rate.
There are a number of factors that determine whether or not a company can receive a loan via the Paycheck Protection Program (PPP). Importantly, if certain conditions are met, loans will be converted into grants.
- Small businesses with 500 or fewer employees—including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible to apply for PPP loans.
- SBA Affiliation standards are waived for certain small businesses in the hotel and food services industries, as long as they are franchises in the SBA’s Franchise Directory or receive financial assistance from small business investment companies licensed by the SBA.
- Business had to be in operation on February 15, 2020, and had employees or paid contractors.
- Additional conditions apply and can be explored here.
- Borrowers can work through a variety of financial institutions to apply for loans.
- Loans can be made through existing SBA lenders or a federally insured depository institution, federally insured credit union, or participating Farm Credit System Institution.
- Existing SBA lenders started accepting applications on April 3, 2020, for small businesses and sole proprietorships. Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans.
- A sample application can be found here
What is needed to apply?
- Documentation showing that borrower was in business on February 15, 2020, and had employees.
- Proof that borrower had employees for whom the borrower paid salaries and payroll taxes (will be used to verify average monthly payroll cost as well).
- Documentation to verify employee counts, dollar amount of payroll, covered mortgage interest payments, covered rent payments and covered utilities (no more than 25% can go to other expenses outside of payroll).
Borrow must certify
- They were in operation on February 15, 2020 and had employees.
- Current economic conditions necessitate the request.
- Funds will be used for approved purposes.
- Acknowledge that forgiveness of loan is contingent upon using funds as approved.
- All information provided is accurate.
The SBA’s Economic Injury Disaster Loan (EIDL) program comes with a $10,000 cash advance that does not need to be repaid, regardless of whether or not businesses qualify and receive a loan. Additional information and details about the program and other funding options can be found here.
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$50 million global philanthropic commitment to address the immediate public health and long-term economic challenges from the COVID-19 global pandemic. Of the initial $15 million released, the firm will promptly deploy $8 million ($5 million in the U.S.) to support vulnerable and underserved Black, Hispanic and Asian Pacific Islander owned small businesses that may struggle to access capital and keep their doors open.