Cares Act Sec. 1102
General Loan Info & Eligibility
LOAN GENERAL INFO:
- Loan Term 2 Years
- Maximum Loan amount $10 million
- Interest Rate 1%
- No Loan Fees, or Prepayment Penalties
- PPP Application Form
Your business could be eligible for the Paycheck Protection Program if you are:
- A Small business or nonprofit with 500 employees or less that was in operation as of 2/15/2020.
- A Sole proprietor (with or without employees), an independent contractor, or self-employed
- A Hospitality business (e.g. restaurant, bar, hotel, RV park) who’s separate locations have 500 employees or less.
Your business is not eligible to participate in the Paycheck Protection Program if you are:
- Taking advantage of the CARES Act provision that grants an Employee Retention Credit
- Taking advantage of the CARES Act provision to delay payment of employer payroll tax and self-employment tax.
- Note also, PPP Loans cannot be taken out if other loans have been granted for the same purpose. If other loans have already been granted for the expenses to be included in the PPP Loan calculation, these other loans need to be re-financed into a PPP Loan, or those expenses need to be excluded from the eligible costs when calculating the PPP Loan amount.
If you qualify, what can the PPP Loan funds be used for:
- Payroll costs, including benefits
- Interest on mortgage obligations, incurred before February 15, 2020
- Rent for lease agreements in force before February 15, 2020
- Utilities for services that begun before February 15, 2020
- The amount of loan proceeds used to pay the following expenses listed above during the 8-week period after the loan’s origination date will be forgiven tax-free:
- Due to high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
- The amount forgiven will be reduced if:
- There is a decrease in full-time employees
- There is a reduction in salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
- You have until June 30, 2020 to restore staffing levels to full time employment and salary levels to reverse any changes made between February 15, 2020 and April 26, 2020.