Paycheck Protection Program
There is a new government resource called the Paycheck Protection Program to help companies and self-employed individuals keep their income stable. The program is nearly $350 billion to provide eight weeks of cash-flow assistance through 100% federally guaranteed loans. You can find this helpful overview by Bench Accounting.
All small businesses are eligible
The loan has a maturity rate of 2 years and an interest rate of 1%
No need to make loan payments for the first six months
No collateral or personal guarantees required
No fees
The loan covers expenses for eight weeks starting from the loan origination date (if the obligations began before February 15, 2020)
The loan can be forgiven and essentially turn into a non-taxable grant
If you are self-employed or rely on gigs, here is the article for you: https://bench.co/blog/operations/paycheck-protection-program-self-employed/
You have to apply for this Paycheck Protection Program through a bank. Like the one you already use, though many have been experiencing delays as this program is completely new. The most important detail about this program is that if you keep your employees, the loan will be forgiven later.
Later this week we’ll go into more detail for both small businesses and the self-employed for this program, but we wanted to get this information out to you now. As always, if you have any questions give me a call at 727-729-2719.