Ref: Borrowers Guide released by SBA April 1, 2020
Highlights:
- Application opening 4/3/20 for most businesses. 4/10/20 for self-employed.
- Where: Any SBA approved lending institutions (most banks).
- How long will application stay open: Until June 30, 2020 BUT when funding runs out, the program will be over. The SBA suggests filing as soon as possible.
- What amount will be forgiven: SBA says that non-payroll costs cannot exceed 25% of the loan in order to be forgiven.
- What is payroll costs: salaries and wages PLUS employee benefits such as vacation pay, sick leave, state and local taxes on compensation.
- What is “payroll” for self employed: The items in number 5, above, plus net earnings from self-employment capped at $100,000.
- What is the interest rate on the loan: .50% fixed. Payments are deferred for six months.
- To request forgiveness: Submit a request to the lender servicing the loan. You will be required to submit documents on how the funds were used including payroll forms.
- Re-hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between 2/15/20 and 4/26/20.
