SBA is Taking PPP Loan Applications Today
This blog entry will update small businesses about the loan programs available under the CARES Act. This blog updates my prior article COVID-19 Financing Options Simplified written on April 1, 2020, our April 6, 2020 blog post, our April 14, 2020 blog post and our April 22, 2020 blog post.
Following last Thursday’s passage of the interim relief bill that replenish $320 billion to the Payroll Protection Plan, $75 billion to fund hospitals and $25 billion for COVID-19 testing. Contact your lender to submit your application today as experts anticipate that the funds will be exhausted by the end of this week. The PPP loan program is summarized as follows:
PPP LOAN PROGRAM
As of the date of this blog entry, the $350 billion allocated to this program is quickly evaporating. Lenders are so busy that many borrowers are stuck in the queue and may never receive the application link to apply. Additionally, applications can only be accepted online and many lender websites and servers are crashing as a result of traffic.
PPP LOAN DETAILS
- Eligible recipients may qualify for a loan up to $10 million determined by 250% of the average payroll costs from previous year or prior 8-week period (determined by Borrower).
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination (must use 75% for payroll expenses and maintain workforce during 8-week period).
- Eligible Borrowers include small business, hotels, restaurants, independent owned franchises, 501 (c)(3) organizations who employ 500 or fewer; and sole proprietors and independent contractors meeting certain criteria.
- Interest rate of unforgiven portion of the loan is 1% and term is two years.
- Loan Applications are filed with qualified SBA 7(a) lenders, not directly with SBA.
- No collateral or personal guarantees.
- No prepayment penalties.
For more information, please contact the experienced corporate attorneys at The Wallace Law Group with a convenient office location in Boynton Beach representing clients in Boynton Beach, Delray Beach, Boca Raton, West Palm Beach, Greenacres, Wellington, Fort Lauderdale, Coral Springs, Deerfield Beach, Parkland, Hollywood, Weston, Aventura, Miami, Miami Beach.