There was an important section in the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) passed by Congress that provides for SBA loans that ultimately can be forgivable. Most people refer to this section as the “Paycheck Protection Program.”
These loans will have different requirements than those found in most SBA rules. Some requirements are more restrictive, and some s are significantly loosened. The information below is based on our understanding of the law now and may be adjusted based on new information and the release of regulations by SBA.
more information on this program on their dedicated site. Additionally, they
released the application that could be used to get ready for the actual release
and start date which they have indicated will be Friday, April 3, 2020:
• Fillable application for use in preparation
• Find a bank here
If you are considering this loan, please speak with your local bank NOW to determine your next steps and proper timing for your situation and practice. Remember, this program began on April 3, 2020, and has limited funds. Some local banks are ONLY assisting current banking customers. Please check with your local bank soon to determine their policies and allow for time to find another potential lender to work with on the PPP.
These are two different programs that may be applicable to your practice. Everyone has different business circumstances; you need to consult your accountant to ensure that you are utilizing all the assistance available to you.