Paycheck Protection Program (PPP)
On March 27, 2020, the United States Congress passed, and President Trump signed, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help support businesses and families through the on-going novel coronavirus (COVID-19) pandemic.
In particular, the CARES Act expanded the SBA Section 7(a) loan program, also referred to as the “Paycheck Protection Program” (PPP), which aims to support small businesses. We are encouraging all our small business borrowers who are impacted by COVID-19 to consider applying for a loan under this new program, which provides some critical benefits, including:
- Cash to cover select business expenses (such as employee salaries and payroll support, rent or mortgage and utilities payments, insurance premiums)\
- Six months of deferred loan payments
- Loan forgiveness (a portion, or possibly all, of your loan may be forgiven)
Key Points to Know:
- Length of a PPP loan: 2 years
- Interest rate on a PPP loan: 1.0%
- Maximum dollar amount of a PPP loan: 2.5x of your average total monthly payments for payroll costs of the business during the 1-year period before the loan is made. Payroll costs include salary, wages, vacation, parental, family, medical or sick leave, severance, health care benefits, and local taxes.
- Last day to apply for a PPP loan: June 30, 2020
- Please note that it takes time for you to complete the application and to process your approval.
- There is a limited amount of funds available under the CARES Act for PPP loans.
To apply for a loan through the PPP, fill out this application form and submit it back to us. Applications can be dropped off or emailed to Tim Woodward at email@example.com. Include your business' P/L statements, Quarterly 941’s, 2019 W-3’s, and/or other supporting documents as required at that time. If you're not already our customer, we also require a copy of your valid driver's license or other state-issued ID.
If you have any questions, please give us a call at 217-773-3319 and ask about PPP. Additional information is available at the links below.
SBA’s information on Paycheck Protection Program
SBA Paycheck Protection Program FAQs