The Paycheck Protection Program provides funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Loans will be fully forgiven when 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). 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.
Loan payments will be deferred for 6 months. There is a 0.50% fixed interest rate.
Nonprofits can apply starting April 3rd. Application can be made at any FDIC-insured banking institution. It is recommended that you make application with your primary bank.
You will need to provide your lender with payroll documentation in addition to other information. Please contact your lender about their required documentation.
The program will be open until June 30, 2020, but it is recommended that you apply as soon as possible as there is a cap on how much funding is available.
Don't miss the how-to webinar (below): what you need to do to apply!