Paycheck Protection Program
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Paycheck Protection Program Now Available for Residential Care Operators

Paycheck Protection ProgramGood news to small businesses including residential care operators who are struggling to stay afloat and keep their workforce intact in this time of the COVID-19 pandemic!  The Small Business Association (SBA) announced that a forgiveness of loan is now available to provide a direct incentive for small businesses like residential care operators to keep your care workers on the payroll.

Paycheck Protection Program Details & Important Links

Known as the Paycheck Protection Program (PPP), is a loan designed to provide direct incentive for for small business to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

Loan payments will also be deferred for six months with no collateral or personal guarantees are required and neither the government nor lenders will charge small businesses any fees.

With a maturity of two years and an interest rate of 1%, loan forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels although forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Business owners can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union and Farm Credit System institution that is participating or any other regulated lenders that were approved and enrolled in the program

Find a Lender

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.  For affiliation rules applicable for the Paycheck Protection Program, click here.

The Interim Final Rule for Applicable Affiliation Rules for the Paycheck Protection Program information is being posted in advance of publication in the Federal Register.  The official version will appear in the Federal Register.

Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program

Among the entities affected by Coronavirus (COVID-19) and eligible for PPP include any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard) and sole proprietors, independent contractors, and self-employed persons

You can download a copy of the PPP borrower application form If you wish to begin preparing your application, and see the information that will be requested from you when you apply with a lender.

Business owners can click apply for disaster assistance. to see if they are eligible for assistance due to the Coronavirus (COVID-19) pandemic.

Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.

For information on additional Lending options, please click here.

SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please click here.