The deadline to apply for a Paycheck Protection Program (PPP) loan is now August 8, 2020. Applying sooner rather than later will allow for sufficient loan application processing time before the deadline. As a reminder, you can apply for a PPP loan through:
- any existing SBA 7(a) lender, or
- any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will also be available to make these loans once they are approved and enrolled in the program.
Loan payments will be deferred for six months, and there are no personal guarantees nor collateral required. As long as the loan is used for payroll costs, interest on mortgages, rent, and utilities – with at least 60% of the loan having been used for payroll – the loan will be fully forgiven.
For help getting started, the U.S. Small Business Administration (SBA) has provided a free online tool to connect small businesses with lenders. Prior to applying with your lender, you can download a copy of the PPP application form to see the information that will be requested of you. According to the SBA, as of June 30, 2020, there have been more than 4.8 million loans approved through the PPP loan program nationwide, with over 5,400 lenders participating in the program.
For more information, please contact us at 916-737-5658 or visit the SBA website at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.