Small Business Paycheck Protection Program
Please be aware: due to the overwhelming national response to this program, the SBA is no longer guaranteeing that new applications will receive funding.
The Paycheck Protection Program was implemented by the Small Business Administration (SBA) with support from the Department of the Treasury. All funding decisions are determined by the SBA. As expected, they are experiencing very high application volume and have limited federal funds. Nutmeg State Financial Credit Union does not control the processing speed or funding amount as it is dictated by the SBA.
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities.
Does this make sense for your business? Read more to find out
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors—are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as possible because there is a funding cap.
Ready to apply? Be sure you have everything in order with the Fact Sheet Checklist.
How to Apply
Please email us to find out more about applying.Back to News