Paycheck Protection Plan Loan is not the same as the Economic Injury Disaster Loan Program (EIDL). Unlike the EIDL, the Paycheck Protection Plan Loan is not processed through the Small Business Association (SBA). Instead, the loans are processed through select banks partnered with the program. The final date to apply for the plan is June 20th.
Who Is Eligible?
This is only applicable for businesses with 500 or fewer employees, hospitality companies that have 500 or less employees at each individual location can also apply. This also includes sole proprietorships, independent contractors, self-employed persons and private non-profit organization/ public non-profit veteran organizations affected by COVID-19.
Loan Terms and Qualifying For Total Forgiveness
If the funds are used for payroll costs, interest on mortgages, rent, and utilities the loan will be forgiven but 75% must be used towards payroll. No collateral or personal guarantees are required. Forgiveness is only applicable is employees are maintained or quickly rehired all at their same salary levels. A company decreases full-time headcount or wages decline forgiveness will be reduced. If you do not qualify for total forgiveness the loan has a 1% interest rate and will be paid off over a 2-year term.
For additional assistance, small businesses can apply for Economic Injury Disaster Loan Program for loans up to $2 million.
To Apply For A Paycheck Protection Plan Loan find a local lender here