PAYCHECK PROTECTION PROGRAM: What You Need To Know!

PAYCHECK PROTECTION PROGRAM
Lenders may begin processing loan applications as soon as April 3, 2020.

The SBA and Treasury Department have launched the new Paycheck Protection Program to help keep employees on payroll and small businesses operating. (With attachments regarding the program from https://home.treasury.gov/cares.) These are loans that may be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must have been used for payroll). Small businesses can apply through any existing SBA 7(a) lender or through any participating federally insured depository institutions, federally insured credit unions, and Farm Credit System institutions. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. Additional information about this program is available at www.sba.gov/coronavirus. 

Paycheck Protection Program - What costs Cover? 
What can I use these loans for? You should use the proceeds from these loans on your: 

• Interest on mortgage obligations, incurred before February 15, 2020;
• Rent, under lease agreements in force before February 15, 2020; and
• Utilities, for which service began before February 15, 2020.

 
What counts as payroll costs? Payroll costs include:

• Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
• Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
• State and local taxes assessed on compensation; and
• For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee

​Paycheck Protection Program Resources:

• Are You Eligible? 
• What will lenders be looking for? 
• How much can I borrow? 
• Will this loan be FORGIVEN? 
• U.S Small Business Administration's Overview Document
• Paycheck Protection Program Application Form
• Paycheck Protection Program Information Sheet: Borrowers 

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Click here to visit the Delaware County Chamber of Commerce's COVID-19 business resource page.