On March 31, 2020, the Treasury Department issued much-anticipated guidance for the Paycheck Protection Program, which will provide up to $350 billion in forgivable loans to help small businesses maintain payrolls during the COVID-19 pandemic. The Small Business Administration (SBA) will fully guarantee PPP loans and waive its guaranty fees.
All banks, as well as a broad range of nonbanks, are eligible to make PPP loans. Banks that have not yet been certified with the SBA should submit an application to DelegatedAuthority@SBA.gov. The SBA will process these applications quickly, and newly enrolled SBA lenders will be able to process applications as soon as Friday, according to a senior administration official. The Treasury Department guidance linked to below outlines the limited underwriting requirements and lender compensation structure for the PPP loans.
Small businesses and sole proprietorships may apply for PPP loans starting on Friday, April 3, and independent contractors and self-employed workers can apply starting April 10. Your customers can begin filling out the application now.
Read the information sheet for lenders.
Read the information sheet for borrowers.
View the application form.
For more information, treasury.gov/cares.