Small Business Administration Paycheck Protection Program
On Friday, May 15th, the Small Business Administration (SBA) with guidance from the Department of the U.S. Treasury unveiled a loan Forgiveness Application along with detailed instructions to assist small businesses with applying for forgiveness on their PPP Loan. The application must be completed in its entirety and include supporting documents for acceptance by the SBA. Please visit www.sba.gov or www.treasury.gov for more information.
Paycheck Protection Program Details
- The program is available to small businesses with fewer than 500 employees, including sole proprietors, independent contractors, nonprofit organizations, and self-employed individuals. Application windows vary based on the type of business: small businesses, nonprofits, and sole proprietors can begin applying for PPP loans on April 3, 2020; independent contractors and self-employed individuals may begin applying on April 10, 2020.
- The loans are forgivable if the funds are used to cover payroll, rent, mortgage interest, and utility expenses, with at least 75% being used for payroll. Once businesses reopen, the business must also maintain an average monthly number of full-time employees equivalent or above the average monthly number of full-time employees during the previous one-year period.
- The loan has a maturity rate of 2 years and an interest rate of 1.0%, with no fees.
- Loan payments are deferred for the first 6 months. No collateral or personal guarantees are required.
- The program is available through June 30, 2020, or until funds are exhausted.
If you have questions
Additional COVID-19 Loan Resources
COVID-19 Relief Business Direct Loan Program
The COVID-19 Relief Business Direct Loan Program provides FAME Direct Loans to Maine-based businesses experiencing interruption or hardship due to COVID-19.
COVID-19 Relief Interim SBA Finance Loan Program
The COVID-19 Relief Interim SBA Finance Loan Program provides FAME Direct Loans to eligible borrowers who provide proof of commitment for SBA financing.
SBA Economic Injury Disaster Loans
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans to help overcome a temporary loss of revenue.