Department of Treasury Releases the Paycheck Protection Program Application
The Department of Treasury just released the Paycheck Protection Program (PPP) application and supplemental information on their website. This program is designed to assist small businesses in keeping their employees paid through the COVID-19 crisis.
As a reminder, loans for this program:
- Are up to 2.5x average monthly payroll and can be used for employee salaries, up to a max rate of $100,000 per year, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments;
- Are up to 100% forgivable if used for the above purposes, to the extent you maintain at least 75% wages and your full-time equivalent employee base; and
- Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals.
The PPP authorizes up to $349 billion in forgivable loans and will have the same terms for everyone. However, please read the PPP Information Sheet here for specific details. In addition, here is the PPP application form you will need to get the process started. Below are a few key items:
When Can You Apply?
- April 3, 2020 – small businesses and sole proprietors can begin the application process through existing SBA lenders
- April 10, 2020 – independent contractors and self-employed individuals can begin the application process through existing SBA lenders
- Other regulated lenders will be available as soon as they are approved and enrolled in the program
Where Can You Apply?
- Any existing SBA lender
- Any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating in the program
- Other regulated lenders once they are approved and enrolled in the program
Who Can Apply?
- All businesses with 500 or fewer employees
Certain industries can have more than 500 if they meet certain criteria