Paycheck Protection Program

On March 27, 2020, the United States Congress passed, and President Trump signed, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help support businesses and families through the on-going novel coronavirus (COVID-19) pandemic.

In particular, the CARES Act expanded the SBA Section 7(a) loan program, also referred to as the “Paycheck Protection Program” (PPP), which aims to support small businesses. We are encouraging all our small business borrowers who are impacted by COVID-19 to consider applying for a loan under this new program, which provides some critical benefits, including:

1. Cash to cover select business expenses (such as employee salaries and payroll support, rent or mortgage and utilities payments, insurance premiums)
2. 6 months of deferred loan payments
3. Loan forgiveness (a portion, or possibly all, of your loan may be forgiven)

Key Points to Know:

• Length of a PPP loan: 2 years (5 years if applied for after June 5, 2020)
• Interest rate on a PPP loan: 1.0%
• Maximum dollar amount of a PPP loan: 2.5x of your average total monthly payments for payroll costs of the business during the 1-year period before the loan is made. Payroll costs include salary, wage, vacation, parental, family, medical or sick leave, severance, health care benefits, and local taxes.
• Last day to apply for a PPP loan: August 8, 2020
• BUT, please note that it takes time for you to complete the application and to process your approval.
• Also, note that there is a limited amount of funds available under the CARES Act for PPP loans.

Additional Resources:

• Borrower Application Form
• Borrower Fact Sheet
• SBA's PPP Page
• Loan Forgiveness Applications
• Loan Amount of $50,000 or Less (Form 3508S)
• Form 3508S Instructions
• EZ Forgiveness Application (Form 3508EZ)
• Form 3508EZ Instructions
• Full Forgiveness Application (Form 3508)
• Form 3508 Instrructions

Please contact us if you would like more information or to discuss this program further.