The Paycheck Protection Program
The deadline for SBA approval is Saturday, August 8. This is not the deadline to submit the application to NextMark Credit Union, but the deadline for SBA to approve your application. Because the PPP-Apply processing team and NextMark Credit Union must review and approve your application before it is submitted to SBA, you should act promptly.
What is the Paycheck Protection Program?
The Paycheck Protection Program (PPP) is a U.S. Small Business Administration (SBA) federal loan guarantee that allows lenders to make loans designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Who can apply?
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations, and 501(c)(19) veterans organizations affected by coronavirus/COVID-19. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
Will I have to pay back this loan?
The loan may be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities and you have not reduced your payroll by more than defined amount. Please note: at least 60% of the forgiven amount must have been used for payroll.
The purpose of this loan/forgiveness is to enable and encourage small businesses to protect their employees. Loan payments will be deferred until 2021 but may be forgiven before a repayment schedule begins. No collateral or personal guarantees are required. Neither the government nor lenders will charge the small business any fees. Forgiveness is based on the 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, beyond an allowable amount.
How do I apply?
Click below to get started on your application!