U.S. Small Business Administration has announced that it will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT. This comes after the President signed the bill providing an additional $320 billion to refill the Paycheck Protection Program on Friday, April 24th.
The original outlay for the Paycheck Protection Program (PPP) had authorized up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis, but the program was out of funds quickly due to very heavy demand by small businesses. According to SBA, more than 1.66 million small businesses have already participated in the program.
The new funds are also expected to run out quickly due to heavy demand, and it is advised that small businesses apply for these loans quickly.
According to the original PPP information sheet from the treasury department, the loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Loan Payments will be deferred for 6 months.