This content was originally published by the Longmont Observer and is licensed under a Creative Commons license.
This is a press release from the Longmont Chamber of Commerce and published here as a public service by the Longmont Observer.
Information is coming to us at lightning speed. We want to ensure that when we share it with our members, that information is accurate, concise, and well-organized. This is the latest information we have received about the Paycheck Protection Program (PPP).
Top 6 Take-Aways
- All small businesses (500 employees or less) are eligible for the Paycheck Protection Program loan.
- PPP applications are being accepted beginning today, 4/3, for businesses and 4/10 for individual contractors and self-employed individuals. Download Application
- There is a funding cap, so we encourage you to apply early.
- Contact your bank and ask if they are an SBA 7(a) lender. If they are, customers will take priority over non-customers. If your bank does not offer SBA 7(a) loans, ask if they know any lenders that they can refer you to. You are welcome to contact us for additional help.
- If you submitted an Economic Injury Disaster Loan (EIDL) application prior to March 26, a new option has since been added to the application to request consideration for a $10,000 advance. You can make edits your application.
- If this is overwhelming, we are hosting a webinar on Tuesday focusing on immediate steps business leaders can take to access direct federal financial support. Click here to register.
Paycheck Protection Program Information
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Fully Forgiven
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply
Starting today, April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply quickly because there is a funding cap.
How to Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.
The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.
Download the form here:
Northwest Chamber Alliance Webinar: Federal Funding Assistance Walkthrough
Tuesday, April 7, 1pm - 2pm
The Northwest Chamber Alliance – the coalition comprised of the Chambers from Boulder, Broomfield, Lafayette, Longmont, Louisville, Superior and the Latino Chamber of Boulder County – will livestream a presentation for all businesses impacted by the COVID-19 crisis on the steps you can take, right now, to access direct financial support.
Sharon King, Executive Director of the Boulder Small Business Development Center, will lead the discussion. Our team will select questions from the attendees via the chat room, so please come prepared with your questions. The Boulder SBDC team will follow up with questions that might not be answered during the presentation at a later date.
We will also have Susan Moratelli, Vice President, Private Banker at Flatirons Bank; and Heath Kinsland, Chief Sales and Marketing Officer at Flatirons Bank, available to provide tips and insights on the field during COVID-19.
