Who can apply:
Businesses with fewer than 500 employees, including: non-profits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors.
When to apply:
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply.
Available loan amount:
Loans can be for up to two months of average monthly payroll costs from last year plus an additional 25% of that amount up to a maximum of $10M.
How is the loan size determined?
Depending on your business’s situation, the loan size will be calculated in different way. The maximum loan size is always $10 million.
• If you were in business February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs during that time period. If your business employs seasonal workers, you can opt to choose March 1, 2019 as your time period start date.
• If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020.
• If you took out an Economic Injury Disaster Loan (EIDL) between February 15, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum.
What it can pay for:
Monthly expenses like payroll (including benefits), interest on mortgage obligations, rent and utilities incurred from February 15, 2020 through June 30, 2020
The loan will be forgiven if:
• The loan amount was only used for payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan, and
• The borrower maintained staff and payroll (ie: did not decrease full-time employee headcount and/or did not decrease salaries or wages by more than 25%). The borrower has until June 30, 2020 to restore full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
How to Apply:
Through any existing SBA lender or any federally insured depository institution, federally insured credit union and Farm Credit System institution that is participating lender.
DEADLINE June 30, 2020
But it should be done as soon as possible.
If you are in need of experienced legal counsel your business, debt negotiation or bankruptcy in New Jersey, or have any futher questions, please contact Tomes Law Firm, PC and we will be happy to assist you