PPP Details & Application
Below you can access information about federal, state, city and private resources in regards to coronavirus (COVID-19).
The Paycheck Protection Program (PPP) closed on May 31st, 2021. If you received funding through this program, visit our PPP Forgiveness page for information on loan forgiveness.
The Paycheck Protection Program (PPP) extended loans to provide an incentive for small businesses and non-profit organizations to keep their workers on the payroll. Importantly, SBA will forgive the loans if the full-time headcount remains the same for eight weeks and the loan funds are used for payroll, and other designated operating expenses.
Loan amounts were calculated as up to eight weeks of average monthly payroll (based on 2019 figures) including benefits, plus an additional 40% (25% previously) of that amount used for rent, mortgage interest, or utility payments made before February 15, 2020, up to a maximum of $10 million.
Some other key program details include:
Fixed 1% interest rate
Loan deferment for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months (six months previously) after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks)
Loans issued after June 5 have a maturity of five years. Loans issued prior to June 5 have a maturity of two years, though can be extended if mutually agreed upon by borrower and lender
No collateral or personal guarantee requirement, or borrower or lender fees payable to SBA
Payroll costs will be capped at $100,000 annualized for each employee
Businesses must have been in operation on 2/15/20
Re-Hiring: You have until December 31, 2020 (June 30th previously) to restore your full-time employment and salary levels for any changes made between February 15, 2020, and April 26, 2020, to be eligible for loan forgiveness
Independent contractors and self-employed individuals are eligible
For more information, you can check out the SBA’s FAQ document.
We know navigating different COVID-19 relief programs can be challenging. The Pace University SBDC is here to help. Contact us to schedule a no-cost, one-on-one business counseling session.