On March 31, 2020, the U.S. Treasury Department released the initial loan application for borrowers under the “Paycheck Protection Program,” a Small Business Administration (SBA) forgivable loan program that is part of the CARES Act passed by Congress last week. In addition, the Treasury Department provided borrowers with an “Information Sheet” for borrowers under the program.
Here are some notable highlights from these releases:
- On the loan application, the borrower and each 20{45ef85514356201a9665f05d22c09675e96dde607afc20c57d108fe109b047b6} or greater owner of the borrower must make certain certifications, including that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations” of the borrower, and the loan will be used “to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.”
- With respect to the future applications to potentially forgive the loan, the application states that “[d]ue to likely high subscription, it is anticipated that not more than twenty-five percent (25{45ef85514356201a9665f05d22c09675e96dde607afc20c57d108fe109b047b6}) of the forgiven amount may be for non-payroll costs.”
- The Information Sheet states that borrowers can begin applying for the Paycheck Protection Loans on April 3, 2020 and includes a link to help borrowers locate a local SBA lender.
A link to the loan application can be found HERE.
A link to the Information Sheet can be found HERE.
Michael D. Walker is a business, tax and estate planning attorney who has worked with individuals and small to medium-sized businesses for nearly 30 years. A careful listener, Michael skillfully guides his clients to meet the wide variety of legal challenges they face in our current complex world.
