Unemployment, SBA Loans and Payroll Protection Plan
Paycheck Protection Program (PPP) Loan
Applications open today, April 3, for small businesses under 500 employees. These loans must be applied for through your financial institution. The most up to date guidance for borrowers is available here:
NEW Information from SBA re: PPP Loans:
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
Lenders may begin processing loan applications as soon as April 3, 2020.
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
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.
This loan has a maturity of 2 years and an interest rate of .5%.
If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you at this link:
Do you have questions about Pandemic Unemployment Benefits?
More than likely you know someone that does. NEW Updated Guidance from TN Dept. of Labor or Self-Employed seeking Unemployment Benefits:
I am self-employed, when can I start applying for Pandemic Unemployment Assistance? You should apply for unemployment insurance NOW, even if it the system shows no earnings. Once the federal government provides states with guidance on how to administer the Pandemic Unemployment Assistance program, Tennessee will start providing those benefits.
Your question may be answered by taking a look at this info graphic. Click Here
Here's the one pager we discussed with the details of the SBA Economic Injury Disaster Loan Program that you can apply for NOW at https://covid19relief.sba.gov/#/