The US treasury department has released their guidance on applying for the Paycheck Protection Program (PPP) loan.  We wanted to share this information with you. Here are the key points:

1. Application period begins on Friday April 3rd. Applications can be made through your local bank. FIRST COME, FIRST SERVE – application period ends on June 30^th, but there will be funding caps.
2. You need to complete the application form. 
3. You will also need to submit your payroll documentation with your application to your lender of choice. Your bank can process your completed application.
4. Size of loan can be up to 2 months of your average monthly payroll cost from the last year (2019), PLUS an additional 25% of that amount
   1. This is subject to a $10,000,000 cap for max loan size
5. You will owe money when your loan is due if you use the loan amount for anything other than the following:
6. You will also owe money if you do not maintain your staff and payroll. This includes:
   1. Number of Staff – Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
   2. Level of Payroll – Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
   3. Re-Hiring – You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
7. You must submit a request for loan forgiveness to the lender servicing the loan. This will include:
   1. Documents verifying the number of full-time equivalent employees and pay rates
   2. Payments on eligible mortgage, lease, or utility obligations
8. All loan payments are deferred for 6 months.