Paycheck Protection Program (PPP)
On April 27, 2020, the Paycheck Protection Program resumed taking applications. It follows the additional funding that is now available after the Paycheck Protection Program and Health Care Enhancement Act was signed into law April 24, 2020.
The loan is designed as an incentive for small businesses to keep their employees.
The PPP allows acceptance of applications through June 30, 2020. The loan has a 1% interest rate and a maturity rate of 2 years. The first PPP act used all its funding in one week.
Furthermore, according to the Small Business Administration, the loan can also be forgiven if requirements are met.
Small businesses will be expected to submit payroll documentation. Payments on the loan do not need to be made for the first six months.
You can find out more information about the loan here:
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
Economic Injury Disaster Loan (EIDL)
According to the Small Business Administration, if you are unable to get a loan through the Payroll Protection Program, there is an Economic Injury Disaster Loan small businesses can apply for.
This loan can be used for accounts payable, payroll, etc. impacted by the coronavirus. Businesses can apply for this loan through December 18, 2020. The terms can go up to 30 years. The Economic Injury Disaster Loan has a 3.75% interest rate for small businesses and a 2.75% interest rate for nonprofit organizations.
You can apply for the loan here: