The Paycheck Protection Loan terms and application were released late in the day on March 31. The application form and borrower information sheet provided by the Treasury Department are listed below to print. Here is some key new information:
- All loans will have the same terms
- The interest rate will be 0.5%
- Loans have a 2-year maturity date
- All payments will be deferred for 6 months
- SBA guidance provides that “it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.”
- Applications start April 3 for businesses and sole proprietors; applications start April 10 for independent contractors and self-employed individuals
- Note from SBA regarding application deadline: “Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap” ($349 billion was allocated by The CARES Act).
- Applicants will need payroll documentation in a format easy for the lender to review and confirm.
For more information on the Paycheck Protection Program, click here.