The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses across the nation to pay their employees during the COVID-19 crisis.
Small business owners can apply for a loan to help pay up to 8 weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
The interest rate is 1% with a 2-year term, and payments are deferred for 6 months. Up to 100% of the loan may be forgiven, and is dependent on the employer maintaining employees and salary levels.
How do I apply?
You’ll need to apply through approved lenders. The program just launched today, and most banks are still ramping up their application process. “Always start with the bank where you currently have accounts”, advises Nate Jemison, SBDC Access to Capital Business Advisor. “They are already familiar with your business, so gathering financial information for the application will be easier.”
Note, the deadline to apply is June 30th.
Who is eligible?
Small businesses and certain non-profits with fewer than 500 employees, as well as sole proprietors, independent contractors and self-employed persons. There are no collateral requirements or personal guarantees required.
For more detail, take a look at our COVID-19 funding information.
Also, note that every day the California SBDC presents a live webinar and Q&A. Register here for the COVID-19 webinar.