Quote:
Originally Posted by O.city
So with the ppp, I just closed on my second practice March 6. It has been in operation for 30 plus years and I haven’t changed anything. We actually contractually closed January 1 but with loan issues had to do addendums to March 6.
I hope that isn’t a problem?
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https://files.constantcontact.com/4f...5e7421297e.pdf
Creates a Small Business “Paycheck Protection Program”
This new $349 billion lending program would be modeled after the Small Business Administration (SBA) existing 7(a) loan program, but
would have a 100% federal government loan guarantee (as opposed to 75% currently). The loan eligibility criteria is as follows:
• Must be a small business as defined by the SBA (typically less than 500 employees, but various by business sector)
• Businesses in the Accommodation and Food Services Sector (NAICS Code 72) are eligible with up to 500 employees at each location.
• Non-profits with a 501 (c)(3) with fewer than 500 employees are eligible.
• Sole proprietors, the self-employed, and independent contractors are also eligible.
The requirement that a borrower cannot find credit elsewhere is waived, and all lenders can provide loans. Not personal guarantee or
collateral is required. Lender would defer fees, principal and interest for at least 6 months, and up to 1 year.
Loan Terms: The loans could be made for an amount equal to 2.5 months of payroll costs, up to a maximum of $10 million. Payroll costs
exclude compensation paid to individuals above $100,000 a year.
Loan Use: An employer must certify that the loan will be used to retain workers, maintain payroll, make mortgage or lease payments, or
pay utilities.
Loan Forgiveness: Borrowers are entitled to loan forgiveness for the portion of their loan that is used for payroll costs for employees
earning less than $100,000 per year, interest payments on mortgages, rent payments, and utility payments made between February 15,
2020 and June 30, 2020. Loan forgiveness will be reduced if the borrower reduces employment by a ratio similar to their reduction in
employment or if borrower reduces salaries and wages by more than 25%.