Starting today, eligible businesses can apply for the Small Business Administration (SBA) Paycheck Protection Program that provides $349 billion under the CARES Act for small business loans to cover qualified payroll costs including rent, utilities and interest on mortgage and other debt obligations.
Passed one week ago, the CARES Act includes more than $2 trillion in spending and tax relief, including forgivable loans to small businesses, direct payments and tax relief for individuals, tax relief for businesses, financial assistance for vulnerable industries, additional health funding and policies, and additional assistance for financial markets in response to the COVID-19 pandemic.
Paycheck Protection Program Loan Terms
- Interest rate: 0.5 percent fixed rate
- Maturity: 2 years
When Can You Apply for The Program?
- April 3 for small businesses and sole proprietorships
April 10 for independent contractors and self-employed individuals
Click here for application form
When Is the Deadline to Apply?
- The deadline to apply is June 30, 2020. Although this is the deadline, the Treasury Department encourages businesses to apply as quickly as possible due to concerns that high demand will cause the program to reach its funding cap of $349 billion prior to that date. It also notes that time needed by lenders to process applications is another reason to apply as quickly as possible.