Paycheck Protection Program

The second round of the Small Business Administration (SBA) PPP program is now open and closes on May 31, 2021. Information about the program is provided below.

PPP Application Deadline Extended to May 31, 2021. SBA to process application thru June 30, 2021.

Eligibility

  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of 500 employees, or that meets the SBA industry size standard if more than 500
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Sole proprietors, independent contractors, and self-employed persons

Terms

  • 1% interest rate
  • No collateral or personal guarantees
  • All principal and interest payments on the PPP loan are deferred until the forgiveness amount is determined and communicated to the lender by SBA
  • Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.

Forgiveness

First Draw PPP Loans and Second Draw PPP Loans qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.
  • A borrower can apply for forgiveness once they have used all loan proceeds for which the borrower is requesting forgiveness
  • Borrowers can apply for forgiveness any time up to the maturity date of the loan
  • If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments

Economic Injury Disaster Loan (EIDL)

In response to the Coronavirus (COVID-19) pandemic, small business owners currently experiencing a temporary loss of revenue are able to apply for an EIDL Advance of up to $10,000.

Terms

  • Maximum loan amount: $15,000
  • The EIDL Advance (does not have to be repaid): Up to $10,000 ($1,000 per employee)
  • Interest rates: 3.75% for small businesses; 2.75% for non-profits
  • Term: Up to 30-years

Eligibility

  • Any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons) affected by COVID-19
  • Private non-profit organizations affected by COVID-19
  • 501(c)(19) veterans organizations affected by COVID-19
  • Business must have been in operation before January 31, 2020

This loan advance will not have to be repaid. Recipients do not have to be approved for a loan in order to receive the advance, but the amount of the loan advance will be deducted from total loan eligibility. On June 15, SBA began accepting new EIDL and EIDL Advance applications from qualified small businesses and U.S. agricultural businesses.

SBA Debt Relief

As part of the coronavirus debt relief efforts, the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.

Learn More

This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. Borrowers do not need to apply for this assistance. For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.

Additional Information

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Marlene Brooks
Marlene Brooks
Dymond Designs Beauty School

“The website is very informative and easy to use for the customer, from the Liaison to the Mayor have been just great.”

Mare Martini
Mare Martini
Nathan’s Deli

“The website was very helpful and gave me additional insight on training for my employees. I also loved that it had additional information regarding Grants on it, that was awesome as well.”

Guy Pelino
Guy Pelino
Amore Da Roma Restaurant