U.S. Small Business Administration
Paycheck Protection Program Loans under the CARES Act
Due to the volume of applications, please expect delay in notifications
Who Is Eligible?
- Businesses (including sole proprietorships and self-employed individuals) and nonprofits with fewer than 500 employees or that meet the Small Business Administration’s (“SBA”) industry based standard-sized requirements for the applicable NAICS codes.
- Eligible businesses and non-profits must meet SBA standards
What Are the Terms?
- Fixed interest rate of 1.0% per annum with no pre-payment penalty
- No collateral or personal guaranties are required
- Two year loan with no payments during first six months
- Businesses are eligible for loans in the amount of the lesser of 2.5x the average cost of payroll incurred over the last twelve months or $10,000,000.
- If your business was started after June 30, 2019, the maximum loan will be 2.5x the average monthly payroll from January 1, 2020 – February 29, 2020
- Maximum loans for seasonal businesses can elect to use 2.5x the average monthly payroll for the time period between February 15, 2019 and June 30, 2019.
- Loan forgiveness will be available for up to eight weeks of payroll costs, mortgage interest payments, mortgage, and machinery and equipment loan interest, rent payments, and utility payments (subject to certain restrictions)
- Forgiveness is subject to loan funds being used for approved purposes and the loan recipient maintaining the average size of its full-time workforce for the eight weeks following the receipt of the loan. If the workforce declines, or salaries be significantly reduced, the forgiveness amount will be reduced.