The Department of Treasury Released the Paycheck Protection Program Loan Application
The U.S. Treasury Department has released the Paycheck Protection Program Loan Application and Borrowers Guide. We encourage small businesses and sole proprietorships affected by the coronavirus pandemic to act quickly to apply. Please contact your local banker to discuss the lender guide to ensure they are aware of program requirements. While it is our understanding that virtually all SBA approved banks and credit unions will be able to process Paycheck Protection Program applications, you should verify that your bank intends to support you and the program. The team at Dannible & McKee, LLP is also available to help you with the application process.
Timing to apply:
- Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans.
Funds from this program:
- Are available to businesses or 501(c)(3) nonprofits with less than 500 employees (and certain employers with over 500 employees), including sole-proprietors, independent contractors, and other self-employed individuals;
- Can be used for employee salaries under $100,000, paid sick or medical leave, health insurance premiums, retirement benefits, and mortgage interest, rent and utility payments; and
- Are 100%, or at least partially forgivable, if used for the above purposes and certain employment levels are maintained.
As we continue to navigate through these uncertain times, we want you to know that our professionals are by your side to help you stay up to date with the tax, compliance and finance changes associated with the newly enacted laws. Earlier this week we offered The CARES Act: An Analysis of the Financing, Loan Forgiveness and Tax Provisions Within the New Act Webinar, which we are hosting again with updated information on Thurs., April 2, 3:30 p.m. – 5:00 p.m. and Fri., April 3, 10:30 a.m. – 12:00 p.m. Click here to learn more about the webinar and to register.
We have also created a Coronavirus Resource Center to help businesses and individuals stay informed. Please be sure to bookmark the link and check back regularly for updates.