After an initial lack of funding, the Paycheck Protection Program (PPP) was resumed on April 27, 2020. Provided below is information about the PPP loan, including guidelines for forgiveness of funds received by way of the program. (If you have not received program funding and still wish to, please contact your local bank branch. Additional information about the program can be viewed here.)
Paycheck Protection Program (PPP) Information and Forgiveness Guidelines
- Loan Forgiveness: The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities over the eight-week period, beginning on the date of disbursement. At least 75% of the forgiven amount must be used for payroll. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
- Interest: The PPP interest rate for all non-forgivable funds is 1%.
- Repayment: Loan repayment for non-forgivable funds is deferred for six months from initial disbursement. Loans will be due in full two years after the date of initial disbursement.
Please note that some information or requirements listed above may differ with your bank. Please check your loan agreement of contact your lender for verification of any information in question.
For additional information, visit the PPP website here.