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Economic Development Collaborative (EDC) — Paycheck Protection Program Extended to May 31, 2021

by Community Contributor • March 30, 2021 • Comments Off

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PAYCHECK PROTECTION PROGRAM

EXTENDED TO MAY 31, 2021

Today, Tuesday, March 30th, 2021, President Biden signed into law an extension of the Paycheck Protection Program (PPP) that allows small businesses and eligible non-profits to apply for PPP loans through May 31, 2021.

PPP is designed to help small business, nonprofits, veteran organizations, Tribal concerns, self-employed individuals, independent contractors, and other eligible borrowers keep their workers employed during the COVID-19 crisis.

Key Components of a PPP Loan:

Loans qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
Employee and compensation levels are maintained;
The loan proceeds are spent on payroll costs and other eligible expenses; and
At least 60% of the proceeds are spent on payroll costs.
Loan forgiveness is based on employer maintaining salary levels and quickly rehiring employees.
First Draw PPP Loans will have an interest rate of 1%, maturity of 5 years and loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 and 24 weeks).
Second Draw PPP Loans allow eligible borrowers that previously received a PPP loan to apply for a second PPP loan with the same general terms as their first PPP loan.
No collateral, personal guarantees or government or lender fees.

Resources

Visit the Paycheck Protection Program website to learn more about the loan details, how to apply, loan forgiveness and frequently asked questions CLICK HERE.

Connect with an EDC SBDC financial advisor! Our experienced advisors are available to answer questions and help you navigate today’s complex business environment. The Economic Development Collaborative hosts the Small Business Development Center and is funded in part through a cooperative agreement with the U.S. Small Business Administration. Signing up as a client takes just a few minutes and provides you lifetime access to all of our no-cost services. Get started today with our no-cost consulting by calling 805.409.9159 (ENGLISH) or 805.309.5874 (SPANISH).

Access our Loan Program by calling 805.409.9497.