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.