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Application Materials for SBA’s Paycheck Protection Program Are Now Available

Click here for the latest update on the Paycheck Protection Program Final Rule, released April 3rd.

The Small Business Administration (SBA) application materials for the Paycheck Protection Program (PPP) are now active and available on the SBA website.

The PPP is a SBA loan program that was included in the CARES Act stimulus program enacted on Friday March 27, 2020. This program prioritizes millions of Americans employed by small businesses by authorizing up to $350 billion toward job retention and certain other expenses. These provisions are highly attractive to employers as they allow for up to 100% forgiveness of the loan.

Small businesses and eligible nonprofit organizations, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

Click here for an overview of eligibility and more application information.

Under this program:

  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.

Immediate Steps for Employers

Banks will begin accepting applications on Friday April 3rd. Contact your SBA banking representative today and begin preparing application materials for immediate submission.

Click here for the PPP Borrower Information Fact Sheet.

Earlier this week, OneDigital hosted it’s latest COVID-19 Employer Advisory Session that provided a detailed overview of the program and specific action plans to prepare for the PPP application process. Click here to watch it on-demand as a webinar.

For employer guidance, resources or insights on the Coronavirus Aid, Relief and Economic Stability (CARES) Act, visit OneDigital's Stimulus Guidance for Employers page.

Based on past SBA practice, our expectation is that Venture Capital or Private Equity backed companies will be excluded from the SBA’s Paycheck Protection Program. We will be monitoring these developments closely, but please also consult with your investor(s) for guidance.