Paycheck Protection Program: Get Your Loan Forgiven
The U.S. Small Business Administration has released the Paycheck Protection Program (PPP)
Loan Forgiveness Application for businesses that received PPP loans. The application includes the following features:
- Options for borrowers to calculate payroll costs using an "alternative payroll covered period" that aligns with borrowers' regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving a PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
The last bullet point was added so that businesses can still qualify for loan forgiveness if employees chose to not continue employment through no fault of the business.
If you need assistance with the PPP Loan Forgiveness Application, we have several resources to help:
- Call the Economic Development Collaborative for free assistance at (805) 409-9159
- Register for a free webinar on Wednesday, June 3, at 9:00 AM on Best Practices for Managing PPP & EIDL Funding Through QuickBooks
Paycheck Protection Program: Funds Still Available
If you have not received PPP assistance, there is still PPP funding available if you apply now. PPP provides loans of between $10,000 and $10,000,000 and are fully forgiven if proceeds are used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination. All PPP loans have the following features:
- Interest rate of 1%
- Maturity of 2 years
- First payment deferred for six months
- 100% guaranteed by U.S. Small Business Administration
- No collateral
- No personal guarantees
- No borrower or lender fees payable to the U.S. Small Business Administration
To apply for PPP assistance, start by visiting the
SBA website to find a local lender to start processing a PPP application for your business. If you have questions about the program, or to discuss other financing options available to your business, please call (805) 409-9159.
