Resource
Paycheck Protection Program
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Paycheck Protection Program
Broad outline:
- Eligible entities are businesses or non-profits under 500 employees
- Self-employed, independent professionals and gig workers are covered
(“payroll” = average monthly net earnings over the past twelve months) - Restaurants and hotel chains with under 500 employees per location
- Max amount of loan = monthly payroll times 2.5 = roughly ten weeks of payroll
- Amount of the loan that is forgiven = sum of following expenses over the 8 weeks following the loan: payroll, rent, utilities, interest on a mortgage
- The portion of loan not forgiven becomes a ten-year term loan, rate capped at 4%. No personal guarantee or collateral required.
- Apply not to the SBA directly, but through an SBA approved bank
RESOURCES
- Application form for the Paycheck Protection Program – from the U.S. Treasury
- Mazars Overview of Paycheck Protection Program – April 2, 2020
- PPP Overview and PPP Fact Sheet – from the Us Treasury
- Small Business Owners Guide to the CARES Act – from the U.S. Senate Committee on Small Business and Entrepreneurship
- Episode 244 of our podcast, Unleashed, provides what is known about the program as of March 28
- Full text of the CARES Act. Search for “Paycheck Protection Program” to find the relevant section, Section 190002 of the act
- Bench.co published a simple guide to the Paycheck Protection Program
- Summary of the program published by the U.S. Senate Committee on Small Business and Entrepreneurship
- Summary from Golenbock Eiseman law firm
- SBA Economic Injury Disaster Loan (EIDL) – SBA EIDL program details and FAQs
- COVID-19 Resources for Small Business Grants – from Staples Connect
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