Loans Made between February 15, 2020 and June 30, 2020
SBA information regarding the Payroll Protection Program
YOU WILL APPLY FOR THIS LOAN THROUGH PARTICIPATING LENDERS BEGINNING APRIL 3, 2020. THE LOAN IS AVAILABLE THROUGH JUNE 30,2020.
- WHO: Entity or Eligible Individual – includes sole proprietors, independent contractors and eligible self employed individuals.
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- Maximum Loan: 2.5 x the Average Monthly Payroll Costs for the preceding 12 months
- Allowable uses of Loan Proceeds:
I) Payroll Costs,
II) Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave and insurance premiums
III) Employee Salaries
IV) Payments of interest on any mortgage obligation
V) Rent
VI) Utilities including electric, water, gas, telephone, internet
VII) Interest on any other debt obligation that were incurred before the covered period
- Maximum Interest Rate is 4%. Prepayment penalties are waived. – SBA UPDATE – 2 year loan with an interest rate of 1.0%
- Non-recourse if it is used for the allowable uses defined above.
- Automatic 6 month deferral for those businesses in operation February 15, 2020 and with an application that is approved or pending on or after March 27, 2020.
- Participating Banks will be paid on a sliding scale.
- Banks are paid by the SBA = 5% of the funded loan not more than $350,000.
- Banks are paid by the SBA = 3% of the funded between $350,000 and $2,000,000
- Source: H.R 748 Section 1102 Paycheck Protection Program, Pages 9-32
Archived from the Hot Topics page.. originally published 04/04/2020.
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