Please read this Fact Sheet from the Treasury Department’s website regarding the $350 billion in Small Business grants from the Federal Government. These grants will be issued on a first come first served basis, so the clock is definitely ticking until the bucket runs dry. When almost 30 million small businesses throughout the United States are all trying to drink from the same firehose, the funds will run out in a hurry.
Some highlights to keep in mind about this Paycheck Protection Program are:
- The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
- When can I apply?
- Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
