The CARES Act Paycheck Protection Program Accepting Applications on April 3, 2020
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the CARES Act) was signed into law. The CARES Act, among other things, created the Paycheck Protection Program (PPP), which provides for low interest loans to pay certain payroll and operating costs of eligible small businesses, along with possible forgiveness of all or portions of the loan. More information on the CARES Act and the PPP can be found in our firm’s COVID-19 Resource Center by clicking HERE.
Yesterday, the United States Treasury Department published an overview of the PPP, an additional information sheet for borrowers and a PPP loan application, all of which can be found of the U.S. Treasury’s website by clicking HERE. Yesterday’s publication provided some clarity on the PPP and useful information regarding timing of applications, all of which is summarized below.
- Starting April 3, 2020, small businesses and sole proprietorship can apply and receive PPP loans.
- Starting April 10, 2020, self-employed individuals and independent contractors can apply and receive PPP loans.
- Portions of PPP loans not forgiven will accrue interest at a rate of 0.5%. Interest will accrue from the date of the loan.
- PPP loans will have a maturity date of 2 years, with an initial deferral of principal and interest payments of 6 months.
- It is anticipated that not more than 25% of the forgiven PPP loan amount can be for non-payroll related costs.
Our attorneys are familiar with the CARES Act and the PPP and are here to assist you in determining if your business may qualify for relief under this program. Please contact us at 215-887-0200 or by going to the Attorneys page of this website.