Paycheck Protection Program
Paycheck Protection Program (PPP) is a loan included in the recently enacted Coronavirus Aid Relief and Economic Security (CARES) Act. The PPP is a $349 billion business loan program backed by the U.S. Small Business Administration (SBA) and designed for small businesses impacted by COVID-19 to use to pay their employees during the crisis.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, most mortgage interest, rent and utility costs over the 8 week period after the loan is made; and,
- Employee and compensation levels are maintained
Payroll costs are capped at $100,000 on an annualized basis for each employee. No more than 25% of the forgiven amount may be used for non-payroll costs.
Loan payments will be deferred for 6 months.
The amount of the loan and other terms can be discussed with our PPP lending team.
More information can be found on the SBA.gov website