April 3, 2020
Beginning this morning, April 3, qualifying businesses can apply for loans under the federal Paycheck Protection Program (PPP). The PPP was part of federal legislation signed into law last week and includes up to $10 million per business to help with employee retention and operational expenses.
It is first-come, first-served so call your bank, credit union or financial institution TODAY to start the process. Approved SBA lenders will handle the loans. For a full list of SBA lenders in Oregon, click here.
A few quick FAQs:
How do I apply?
Loans will be made through financial institutions that are already Small Business Administration qualified lenders. Your first call should be to your bank or credit union.
When can I apply?
Small businesses (fewer than 500 employees) and sole proprietorship can apply for loans starting today, April 3.
Starting April 10, independent contractors and self-employed individuals can apply, according to the Treasury guidelines.
Who qualifies?
Businesses and entities in operation on February 15, 2020
Small Businesses, 501(c)(3) nonprofits, 501(c)(19) veterans’ organizations or tribal businesses that have fewer than 500 employees or otherwise meet the SBA size standard.
Businesses in the accommodation and food service sector that employ 500 or fewer employees per physical location.
Businesses that have already received an Economic Injury Disaster Loan (EIDL) but have not used it for the same purpose
What will the loans look like?
Loan amounts up to 2.5x average covered monthly payroll and selected overhead expenses, not to exceed $10 million.
Potential for loan forgiveness for eligible payroll, mortgage interest, rent and utilities during the covered eight-week period after origination.
No fees and no prepayment penalties.
No business collateral or personal guarantee required.
Payments are deferred for six months.
Our partners at the U.S. Chamber of Commerce have created this helpful overview of the PPP and what it means for small businesses across the country.
