Last night, the Treasury Department published an overview of the Payroll Protection Program, a related information sheet, and a loan application - all of which can be accessed on the Treasury's website here.
The Treasury’s guidance offered additional details on the program, which included changes from some of the terms that were anticipated based on the original Act. Highlights include:
- Applications can be made for small businesses and sole proprietors starting April 3, 2020
- Applications can be made for independent contractors and self-employed individuals starting April 10, 2020
- Interest rates on loans are fixed at 0.5 percent
- Borrowings have a maturity of 2 years
- Interest payments are deferred for 6 months, but interest will continue to accrue during the deferment period
If you need assistance determining eligibility, loan amounts, or other terms, please contact us.
We recently hosted a webinar which covered key provisions of the Paycheck Protection Program, aspects of the related PPP Loan Forgiveness, and how to prepare for the loan application process. You can watch the rebroadcast here as part of Kreischer Miller's PPP accounting coverage.
We are also regularly updating our COVID-19 Resource Center, which you can access here. If you have any questions about these or any other matters, please do not hesitate to contact your Kreischer Miller professional or any member of our team.
Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.