The U.S. Treasury Department has now published information on the Paycheck Protection Program and provided an application for borrowers to fill out and present to their lenders.
Some of the information is duplicative of information I provided in previous summaries, but there is some new information here in addition to the application.
- Small businesses and sole proprietorships can begin applying for and receiving loans on April 3, 2020.
- Independent contractors and the self-employed can begin applying for and receiving loans on April 10, 2020.
- You can apply through any existing SBA lender, federally insured bank, federally insured credit union, or Farm Credit System institution that is participating in the program.
- The program is open until June 30, 2020, but you are encouraged to apply as quickly as you can because there is a cap on the funds and lenders need time to process the loans
- Loan forgiveness for non-payroll expenses (rent, mortgages, utilities) is capped at 25% of your loan amount.
- The interest rate on the loan will be fixed at 0.50%
- The loan is due in 2 years, and there are no prepayment penalties or fees.