The Small Business Administration (SBA) released the loan application for the Paycheck Protection Program and an information sheet containing loan guidelines. Some highlights of the guidelines:
- April 3, 2020: Loan applications will start being accepted for businesses and sole proprietors
- April 10, 2020: Loan applications will start being accepted for independent contractors and self-employed individuals
- More lenders will be added as they are approved/enrolled. To apply, you should reach out to one of the approved lenders
- There are no changes to affiliation standards from those specified in the CARES Act. However, additional guidance may be released by SBA as appropriate
- All loan terms will be the same for everyone
- Due to anticipated high demand, SBA anticipates allowing not more than 25% of the forgiven loan amount to be used for nonpayroll costs (utilities, rent and interest on a mortgage)
- Interest Rate: 1% fixed rate, lowered from 4%
- Maturity: 2 years, shortened from 10 years