The Paycheck Protection Program provides approximately $350 billion for a temporary supplement to the SBA’s current loan program through which SBA-approved banks are authorized to make loans to qualifying eligible entities. The PPP has three key components:
- Expanding the businesses that are eligible for loans;
- Modifying the loan terms, including eliminating guaranty and collateral requirements of the borrower; and
- Allowing all or a portion of the loan to be forgiven if the borrower maintains its payroll during the eight-week period following the funding and uses the loan proceeds as permitted. SBA-approved banks are moving expeditiously to create simple PPP loan application portals and instructions to make the application and funding process faster and more efficient.
Below is a summary of the key features of the Paycheck Protection Program.
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