Updated: Apr 10, 2020
This program comprises the majority of the CARES ACT Small Business Provisions totaling to 350$ in direct funding. The Paycheck Protection Program is a forgivable loan program that will provide your small business with funding for 8 weeks of support for payroll and rent for businesses of 500 or fewer employees. This program also extends to individuals employed in the GIG economy, self employed individuals, 501 C 3, and 501 c 19 organizations.
About the Payroll Protection Program
Each small business can receive up to $10 million in support. Not all businesses will receive $10 million dollars and your loan amount will be determined through a series of operational calculations. These calculations include compiling your payroll records and multiplying the average payroll by 2.5. Similarly you will add your rent. If the calculations come out to less than 10$ million, that is the amount in loans you will receive, if your calculations come out to more than 10$million dollars, unfortunately your loan amount will be capped to the 10$ million standard. Every layout comes with the latest social features built in. Readers will be able to easily share posts on social networks like Facebook and Twitter, view how many people have liked a post, made comments and more. With the Wix, building your online community has never been easier.
Who Can Apply?
The following entities affected by Coronavirus (COVID-19) may be eligible:
Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
500 employees, or
That meets the SBA industry size standard if more than 500
Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
Sole proprietors, independent contractors, and self-employed persons
Loan Details and Forgiveness
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The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of 1%.
If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.