Payroll Protection Program Application Has Been Released

The Administration promised to get money out to the small businesses fast, and they are doing what they can to make good on that promise.  The Treasury Department has posted a press release describing some of the term and conditions for the Payroll Protection Program (PPP).  Some of the new details include the terms and conditions for all PPP loans:

• Interest rate of 0.5% (even better than the “not more than 4%” promised in the statute)
• Maturity of 2 years
• First payment deferred for six months
• 100% guarantee by SBA
• No collateral
• No personal guarantees
• No borrower or lender fees payable to SBA

The maximum value of these loans is 2.5 times the monthly average of your past year’s worth of payroll.  Remember, these are the loans that can be forgiven, as long as you meet the PPP requirements, like employee retention and use for approved purposes (like payroll and rent).

Other resources that have been made available today include:

• • Fact Sheet for Borrowers
  • Fact Sheet for Lenders
  • Application Form for the PPP

Be sure to keep the Fact Sheet for Lenders handy when you contact your bank.  I joined the virtual town hall with Senator Cardin and Congressman Raskin this evening, and one man explained that his bank was quoting these loans as if they were traditional EIDL loans (which have additional requirements), and was quoting an expected lead time on the loan of months.  The US Government expectation on these loans is that they will be processed by your banks in a matter of days.