The Small Business Administration released more information Tuesday on the $349 billion Paycheck Protection Program targeting small business job retention.
Small businesses and sole proprietorships will be able to apply for (.pdf) and receive payroll-coverage loans (.pdf) through existing SBA lenders starting Friday, while independent contractors and self-employed individuals can apply starting April 10, according to a news release and information provided on the Department of Treasury website. The deadline for application processing will be June 30.
Eligible small businesses, nonprofit organizations, veteran’s organizations, tribal businesses, independent contractors and self-employed individuals will be able to qualify for a loan up to $10 million with a six-month payment deferral period, according to the release. Some businesses with more than 500 employees will be considered if they meet SBA employee-based size standards for industry exceptions.
SBA affiliation standards will be waived for this program for small businesses in the hotel and food services industry, according to the release.
The loan amount will be determined by the business’s last eight weeks of prior average payroll with an additional 25% of that amount. The SBA will forgive a portion of the loan covering the initial eight weeks of payroll after the loan is made, including most mortgage interest, rent and utility costs during this period, the release said.
Payroll costs will cap at $100,000 for each employee on an annualized basis.