Client Alert
(by Moore Capito, Christian Farmakis and Andrew Terranova)
Earlier today the U.S. Treasury Department (the Department) published additional information on the Paycheck Protection Program (PPP Loan), enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Below are critical points that the Department has clarified in the published guidance.
When can I apply?
- Small businesses and sole proprietorships can begin submitting applications on Friday, April 3, 2020
- Independent contractors and self-employed individuals can begin submitting applications on Friday, April 10, 2020.
How much money can be borrowed?
The Department clarified that salary, wages, commissions, or tips are capped at $100,000 on an annualized basis for each employee.
How much of the loan is forgiven?
Due to likely high subscription, the Department anticipates that not more than 25% of the forgiven amount may be for non-payroll costs.
What is the interest rate of the loan?
0.5% fixed rate.
Read the latest guidance information issued by the Department of Treasury below.
For a top-line overview of the program, click here.
If you’re a lender, more information can be found here.
If you’re a borrower, more information can be found here.
The application for borrowers can be found here.
For more information on the above program or for assistance in applying for the program, please contact Babst Calland Attorneys Moore Capito at 304.552.8986 or mcapito@babstcalland.com, Christian Farmakis at 412.394.5642 or cfarmakis@babstcalland.com or Andrew Terranova at 412.773.8717 or aterranova@babstcalland.com.
