Resource

Paycheck Protection Program

March 31, 2020

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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

Contributors: 

Tom Kendall

Surbhee Grover