Applications Will Start April 3, 2020
The much-anticipated application for the “CARES” act Paycheck Protection Loan was issued today. You can find it here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
Treasury also has given some important information such as; what counts as payroll costs; what may be forgiven; and that you will owe money when the loan is due if the money is used for anything other than payroll costs, mortgage interest, rent and utility payments over the 8 weeks after receiving the loan OR if you do not maintain your staff and payroll. There is a formula for the deduction.
If some portion of the loan is not forgiven, the interest rate of .5% fixed will apply and that the loan will be due in 2 years. Payments are deferred for 6 months but interest will accrue.
Small Businesses may apply starting April 3, 2020. Independent Contractors and Self-Employed individuals may apply starting April 10, 2020.
The notice also lists what you need to apply and what you must certify when you apply. You can find this, and more important information, here: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses.
We suggest you apply as early as possible as there is a cap on the money allotted by the federal government and we would not want you to miss out if this loan/forgiveness program is good for you.
We have set up a group of attorneys to assist you if you need help with the application. The attorneys in Forchelli Deegan Terrana LLP’s Employment & Labor practice group will continue to keep you updated on any changes to your requirements as an employer as updates become available. Should you have any questions, or wish us to assist you with the loan application, do not hesitate to contact me at the below contact information.
If this loan program is not appropriate for you, please look into the Economic Injury Disaster Loan (EIDL). It may better align with your business plan. Either way, we are here to help.
Battling the novel coronavirus is difficult for everyone. We are here if you need us. With best wishes for your, and your family’s health and safety.
Gregory S. Lisi
Partner-in-Charge, Employment & Labor practice group
GLisi@Forchellilaw.com | 516.248.1700