What You Need to Know About the Paycheck Protection Program (PPP)

Posted on April 2, 2020

Paycheck Protection program (PPP) - SBA Loans - Keiter Advisors

Note: The Paycheck Protection Program Borrower Application Form was made available to small businesses as of April 3, 2020.

On March 31, the Small Business Administration (SBA) issued two documents, a sample Paycheck Protection Program Loan Application and a Paycheck Protection Program Information Sheet, in order to provide further guidance on the PPP loan program. Matt Austin, managing director of Keiter Advisors, provided a summary of the significant updates to the SBA guidance and the impact on small businesses and sole proprietorships.

“New SBA Guidance on Paycheck Protection Program” Excerpt:

The SBA provided further guidance on Paycheck Protection Program Loans.  The significant updates from our perspective are as follows:

  • Small Businesses and sole proprietorships can apply for and receive loans through their existing lenders starting April 3, 2020. Independent contractors and self-employed individuals can apply through existing SBA lenders starting April 10, 2020.
  • Non-forgiven portions of the loans will be due in 2 years and bear interest at 0.5% fixed rate. The non-forgiven portions can be prepaid at any time without penalty.  Payments can be deferred for 6 months but interest accrues.
  • In determining the loan amount, the SBA clarified that employees making over $100,000 can be included in payroll costs, but their pay is capped at $100,000.

Read more for full insights.

Source: SBA.gov

Should you have questions, please reach out to your lender, attorney or accountant. We continue to stress to clients that if they are interested in this program to contact their primary lender to convey their interest and to learn more about how that bank will be managing this process.

As advisors to the food distribution industry for over 15 years, we are here to help. Together, we will get through these uncertain times.

Bill Beattie                                                                           Matt Austin

Email: bbeattie@keiteradvisors.com                Email: maustin@keiteradvisors.com

Phone: 804.565.6018                                                        Phone: 804.433.4184


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