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SBA Accepting Paycheck Protection Program Applications
Beginning today, April 3, through June 30, small businesses can apply for Paycheck Protection Program (PPP) loans. Click here for the PPP loan application.
Loan payments will be deferred for six months at a 0.5% fixed interest rate. Under the guidance, the loans can be forgiven if the business uses at least 75% of the money for payroll costs and must retain or rehire employees and maintain salary levels. Some ambiguities remain but they may not be resolved in time to submit an early application.
Practices should contact their lender to determine what additional information they require. According to the U.S. Treasury Department, borrowers may “apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System Institution that is participating." Visit www.sba.gov for a list of SBA lenders. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.
Before you start an application gather the following information:
- The date your practice started
- Detailed information in order to calculate the average monthly payroll costs for your employees for the past 12 months, as outlined by SBA: Payroll costs include (Download Excel Paycheck Loan Calculator): Compensation to employees that is a salary, wage, commission or similar compensation; vacation, parental, family, medical or sick leave; allowance for dismissal or separation; group health care benefits; retirement benefits; and state or local taxes on the compensation of employees; and Compensation to sole proprietors or independent contractors that is an amount not more than $100,000 in 1 year (prorated for February 15 – June 30, 2020).
- Your annual revenue
- Your business mailing address
See the CARES Act Small Business Owner’s Guide for more information.