The SBA Paycheck Protection Loan Program has changed as of today, Friday, April 3, 2020.
Matt Garrett reviews the eligibility requirements, loan terms and fund allocations required for businesses who receive these PPP loans.
Businesses who receive a loan in, for example, the amount of $100K would necessarily have to allocate $75K to payroll costs. If they do not use the full amount, those businesses should immediately give back the difference between how much they use and that 75% portion of the total amount borrowed. in the case of the $100K loan, businesses can then allocate the remaining $25K (or 25% of the loan amount) to occupancy costs. If the business does not use all of that amount the remainder becomes an unforgiven loan and must be repaid within 2 years at 1% with an automatic 6 month payment deferral.