If you are a small business owner, the Paycheck Protection Program is probably on your mind.  This new extension of the Small Business Administration 7(a) program (SBA), makes loans available to businesses with less than 500 employees.  And this of course, is a part of the larger overall stimulus package that was quickly pushed through the government. However, the loans come from one of hundreds of banks that are either current SBA approved lenders or will hereafter be approved as part of the program. So, you’ll need to contact your bank and follow their specific instructions to apply for the loan.

You qualify for one loan under the Paycheck Protection Program if you need the funds to retain workers, maintain payroll, cover interest payments, rent or other basic expenses.  The amount each business can qualify for is 2 ½ times the average monthly payroll expense.  The actual amount spent over 8 weeks may be forgiven if the funds are actually spent on approved expenses and employees are not terminated or are reinstated prior to June 30, 2020. Payments on the balance of the loan may be deferred for at least 6 months up to 1 year and paid back over a term up to 10 years at 4% interest.

Those generalities make seem fairly straightforward, but there are several confusing rules and terms that are used in different combinations in the rules of the program.

Your best bet may be to contact an attorney and get the help you need to navigate this sometimes confusing program, so that you can know exactly what you’re getting.