Paycheck Protection Program Tag

SBA Paycheck Protection Program & Debt Relief

As of 3.31.20, the Paycheck Protection Program (PPP) has been rolled out.

One additional benefit, SBA Debt Relief, might be currently being overlooked by some but is a very large benefit for borrowers with existing SBA loans, AND for borrowers with a new loan issued before 9.27.20.   This new loan provision could be very motivational for future buyers and businesses on the market currently.

Buyers- with SBA Debt Relief, if you close on a business before Sept 27th, the SBA will PAY your first 6 months payments!  

Here are a few highlights along with the application and a document tracking checklist.

Paycheck Protection Program (highlights)

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

• Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
• Loan payments will be deferred for six months.
• If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
• The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).
• No collateral or personal guarantees are required.
• Neither the government nor lenders will charge small businesses any fees.
• Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
• This loan has a maturity of 2 years and an interest rate of .5%.
• The Paycheck Protection Program will be available through June 30, 2020.
• It is recommended to check with your current bank first to apply due to the high volume expected.