Paycheck Protection Program Application Released

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