Friday, April 3, 2020 | View in browser
Paycheck Protection Program Loans
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep workers on the payroll. The PPP authorizes $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.
When can I apply?
- Starting April 3, 2020, small businesses and sole proprietorships can apply through existing SBA lenders
- Starting April 10, 2020, independent contractors and self-employed individuals can apply through existing SBA lenders
- Other regulated lenders will be available to make these loans once they are approved and enrolled in the program
- Application deadline is June 30, 2020 (funds are first-come, first-served)
Can I apply for both the PPP and the Economic Injury Disaster Loan (EIDL)?
If you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, if does not affect your eligibility for a PPP loan.
If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan.
How large can my loan be?
- Up to two months of your average monthly payroll costs from the previous year plus an additional 25% of that amount
- Subject to a $10 million cap
- Payroll costs capped at $100,000 annualized for each employee
How much of my loan can be forgiven?
- Loans will be forgiven if all employees are kept on the payroll for eight weeks and money is used for payroll, rent, mortgage interest, or utilities (at least 75% of forgiven amount must be used for payroll).
- Forgiveness based on employer maintaining or quickly rehiring employees and maintaining salary levels
- Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease
What are the loan terms?
- Two year repayment
- Interest rate of 1%
- Payments deferred for six months (interest will still accrue)
- No prepayment penalty
- No personal guarantee or collateral is required
What can I use these funds for?
- Qualified payroll costs
- Rent
- Mortgage Interest
- Utilities
- Other debt obligations
Due to a high volume of interest, please be patient and expect delays.
For additional information on PPP and what information will be needed for certification, please click here.
SBA Webinar Follow-up
Thank you to all who attended the webinar on April 1. For those who were unable to attend, the slides and video recording of the webinar are available below, as well as a follow-up guide for questions asked during the webinar.
Video Recording
Webinar Slides
Q & A Follow-up
EIDL v. PPP Comparison Guide
Additional resources can be found on our Evanston Edge website.
All In Illinois
On April 2, Governor JB Priztker introduced All In Illinois to unite residents across the state to continue to stay home and stay safe.
Now more than ever, we all need to do our part to support our community. Take the pledge to be 'All In' - for our neighbors and grandparents, our health care professionals and first responders, our grocery store workers and so many more. Together we can slow the spread. Show your support by with these printable signs.
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