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Paycheck Protection Program

One of the core components of the CARES Act is loans from the SBA called the Payroll Protection Program.  The Program is designed to make funds available to qualifying businesses quickly through approved banks.  It is to encourage businesses to retain employees through this COVID-19 crisis by assisting in the payment of certain operational costs.  Please visit our EIDL vs PPP page to compare the EIDL and PPP loan programs. 

Paycheck Protection Program Application          PPP - Information Sheet - Borrowers

PPP - Information Sheet - Lenders                       

We have confirmed with National Bank of Arizona in Page, AZ that they are an approved bank and will be processing these loans.  The SBA is planning on having the processes to the banking world by Friday, April 3rd.  Please click on the link below for information. 

National Bank of Arizona Paycheck Protection Program                        NBA PPP Information Flyer

We have confirmed with Bank of the West in Page, AZ that they are an approved bank and will be processing these loans.  The SBA is planning on having the processes to the banking world by Friday, April 3rd.  Please click on the link below for information.

Bank of the West PPP Information

KEY POINTS

Qualifying Businesses include:

  • Businesses with up to 500 employees
  • Qualified Self Employed businesses
  • Nonprofit organizations
  • Eligible independent contractors and sole proprietors

 

How much can be borrowed?

Borrowers can borrow 2.5 times their monthly average payroll expenses from the previous 12-month period.  For example, payroll expenses from April 1, 2019 through March 31, 2020 will be averaged.  That product will then be multiplied by 2.5.

Payroll expenses include employer paid health insurance and retirement plan match contributions.  

 

What can the funds be used for?

Businesses can use the funds to cover expenses including:

  • Payroll costs including vacation, sick leave; health care benefits including insurance premiums; retirement benefits, etc.
  • Mortgage interest payments (not principal amounts and no prepayments of principal) incurred before February 15, 2020
  • Rent
  • Utilities
  • Interest on any other debt obligations that were incurred before February 15, 2020.

 

Borrowers Can Qualify for Loan Forgiveness

  • During the 8-week period beginning on the date the loan is funded, a borrower is eligible for loan forgiveness for the total costs incurred and payments made for payroll costs, mortgage interest, rent, and utilities during that 8-week period.
  • The loan forgiveness amount is reduced if an employer reduces the number of employees during the 8-week time period.
  • The forgiveness amount will not be subject to income tax (excluded from gross income)

 

Terms of the Loans

  • Any loan amounts not forgiven will be given a maximum 10 year term and a maximum 4% interest rate.
  • Any loan payments will be deferred a minimum of 6 months and a maximum of 12 months.
  • There are no collateral requirements 
  • Personal Guarantees are not required

 

SBA - Paycheck Protection Program