The $900 Economic Stimulus Program signed into law two weeks ago includes a new round of Paycheck Protection Program (PPP) loans that are now available for certain small businesses.
The PPP is administered by the US Small Business Administration (SBA) and is designed to support employers’ ability to maintain their employees and meet certain on-going expenses. As with the first round of PPP, the SBA will forgive the loan if all employee retention and allowed operating expense requirements are met.
The loans themselves have an interest rate of one percent (1%) and mature in two-years or five-years.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. No collateral or personal guarantees are required, and no small business fees will be charged by the federal government or lenders.
Applications can be made through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.