Recently added as an SBA loan program, the Paycheck Protection Program provides federally-guaranteed loans to eligible small businesses. Loans are the lesser of $10 million and a calculated amount based on payroll and may be forgivable. Talk to your Lendio funding manager for more information on calculating your loan amount. These loans are intended to help small businesses retain employees throughout and after the Coronavirus (COVID-19) crisis.
As dictated by the CARES Act, the SBA has already committed and reserved $350 billion in forgivable loans to small business owners across America. Starting on Monday, April 27th, it began funding an additional $300+ billion in loans to small business owners who weren’t able to receive a loan from the initial pool of $350 billion.
The loan may only be used for:
You may be eligible to have all or a portion of the loan principal and interest forgiven if you use the funds for certain qualifying costs incurred and payments made for payroll, mortgage interest, rent and utilities during the first eight weeks following the date the loan is made. You will have to provide documentation.
Because the SBA expects a high number of applicants for PPP loans, no more than 40% of the forgiven amount can be for non-payroll costs (i.e., mortgage interest, rent, and utilities). If your business has laid off employees, that will also affect how much your loan can be forgiven. The total effect on your PPP loan’s forgiveness-eligibility depends on a calculation that your funding manager can walk you through to give you the specific answer for your business.
Town and Country Bank and Peoples Prosperity Bank is proud to be one of the best banks for small business loans in Central Illinois and Metro East. We are approved to offer SBA loan products under SBA's Preferred Lender and Express programs.