Beaird Harris will be closed on Friday, July 3rd in observance of the Independence Day holiday.
March 31, 2020
The Paycheck Protection Program (“PPP”), or 7(a) loan process, will open up on Friday, April 3, 2020. Each lender is responsible for administering the program at their respective institutions and therefore the timeline for opening the program may vary across lenders.
It appears there will be very limited information required for this loan application, including payroll data from April 1, 2019 to March 31, 2020. We do NOT anticipate the “normal” loan package information will be needed, but each lender may have their own requirements.
The SBA has said the loan will be fully forgiven if the funds are 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). Collateral or personal guarantees will not be required. Neither the government nor lenders will charge small businesses any fees.
We will begin our detailed analysis of the process released by the SBA and advise our clients on the relevant information ASAP. This is a very fluid situation and we are digesting as fast as possible. Please note our team is working around the clock on this and we are responding as quickly as possible to the questions coming in from our clients.
In the meantime, please contact your bank for information on how to apply for the loan.
*Contract must have been in effect as of February 15, 2020.
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