Billions of dollars in potentially forgivable Payroll Protection Program
capital remains available to small businesses and nonprofits to help
provide eight weeks of payroll and certain overhead to keep workers
employed. PPP, laid out by the Coronavirus Aid, Relief, and Economic
Security (CARES) Act, is responsible for infusing billions of dollars of
capital into small businesses nationwide and saving jobs.
The second round, which kicked off April 27, has awarded 2,378,057 loans
worth $181,158,888,644 as of close of business May 5. More than
$900,000 of those loans, worth $57,296,660,188, were issued by small
lenders. SBA forgives the portion of Paycheck Protection loan proceeds
used to cover the first eight weeks of payroll costs, rent, utilities,
and mortgage interest. Loan payments may be deferred for one year, and
loans are retroactive from Feb. 15, so employers can rehire their
recently laid-off employees through June 30.
Approved lenders can be found using the lender locater at:
https://www.sba.gov/document/support--paycheck-protection-program-participating-lenders.
Forgiveness is based on the borrower maintaining or quickly rehiring
employees while maintaining salaries and hours. PPP loans have a
maturity of two years and an interest rate of 1%. A copy of the PPP
borrower application form can be found at:
https://www.sba.gov/document/sba-form-2483-paycheck-protection-program-borrower-application-form.
