The Payroll Protection Program can only be applied through your current commercial banks (so long as they are pre-approved as an SBA lender):
- Generally, loan amount will be based on your average monthly payroll costs, multiplied by 2.5 (rent cannot be included in these calculations).
- If you received an EIDL Grant, that amount will be deducted from this loan amount and/or can be refinanced as PPP.
- The loan becomes forgivable if used for purposes such as, but not limited to:
- Compensation (salary, wage, commission, etc.)
- If the funds were not used for the above forgivable purposes, the loan will have the following terms:
- Maximum of 10 years
- Interest rate of 0.50%, fixed rate
- Details can be found here at the Treasury website: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
Please contact your commercial bank representatives for further information.
Provided by INC