The SBA and Treasury Department continue to tweak and clarify information in the initial documentation that was released regarding the Paycheck Protection Program. We are constantly monitoring the various sources to stay on top of things while information continues to rapidly change.
As of now, here is what we know:
- The loan term is now 2 years.
- The interest rate was changed on April 2 from .5% to 1.0%.
- Payments to independent contractors do not count for purposes of a borrower’s PPP loan calculation since contractors have the ability to apply for a PPP loan of their own.
- Given the inconsistencies in the Treasury Department’s guidelines, we are seeing banks differ in how they are handling the process.
The Treasury Department’s Assistance For Small Business site is the best place to check for the latest developments.
We are also updating our COVID-19 resource center regularly.
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Please contact us should you have questions, and stay safe and well!