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New Guidance Regarding SBA PPP Loans
The US Department of Treasury has released new guidance regarding SBA loans to be made under the Payroll Protection Program. Some critical points clarified by the Treasury guidance include:
- PPP loan applications will be submitted directly to SBA-certified lenders, who can begin accepting applications as of April 3, 2020 (April 10th for independent contractor applications).
- However, each lender can set their own timetable and may not begin accepting applications immediately. With that said, the loans are on a first come, first serve basis. Heavy volume is anticipated, and there is a funding cap on the program. Applicants should therefore assume that time is of the essence and have all their application materials ready by April 3rd (payroll documentation, etc.).
- The interest rate on the loans has been reduced to 0.5% (previously announced as 4%).
- Treasury has clarified that loan forgiveness will apply to all salaries, but capped at $100,000.00 per employee. Previously, it was unclear whether loans used to pay individual salaries exceeding $100,000.00 were eligible for any forgiveness.
Sauchik & Giyaur, P.C. is fully operational. Our attorneys are here to answer all of your COVID-19 emergency funding questions. Feel free to reach out for assistance with your applications.