The SBA has changed their loan program in the aftermath of CARES act. The PPP Loan was signed into law on March 27, 2020. On March 31, the SBA issued its guidance and sample application for the loan to be used by banks.
The loan forgiveness provision is the best part. Taxpayers are eligible for loan forgiveness for the amounts spend over the next eight weeks after receiving the loan on certain qualifying expenses. The qualifying expenses of the business over the eight-week period includes payroll costs, rent, interest on mortgage debt and utilities.
You apply for the PPP through your local bank. Yesterday, the SBA offered a specific timeline for different applications.
Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
We are here to assist employers and business taxpayers with loan application process. Please do not hesitate to contact us!