Paycheck Protection Program- $349 billion available
The Paycheck Protection Program (PPP) is a Small Business Administration (SBA) loan that is designed to help businesses continue to employ their workforce during the Coronavirus (COVID-19) crisis.
What's the details?
This loan will be fully forgiven if the funds are used properly and the company abides by the following terms:
No collateral or personal guarantees are required for this loan and neither government nor lenders will charge small business fees. Loan amounts can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount with a $10 million cap. This loan has duration of up to 2 years and an interest rate of 1%. Loan payments will be deferred for 6 months.
How do I apply?
Apply for the PPP Loan through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Check with your local lender to see if it is participating. Find an eligible lender through SBA's website here, or check out this list of lenders in Alabama. All loans will have the same terms regardless of the lender or borrower.
You can download a copy of the PPP borrower application form to prepare your application and see what all information will be needed to apply with a lender.
Small Businesses and sole proprietorships can apply now. Independent contractors and self-employed individuals can apply starting April 10, 2020. Apply quickly because there is a funding cap!
For additional and accurate information visit SBA's website.