Paycheck Protection Program Allocates Almost $350 Billion To Support Emergency Loans To Qualifying Businesses
Paycheck Protection Program (PPP) – The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
- Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
The Texas Comptroller's Agency is offering assistance to business owners who are unable to submit their February 2020 collected sales taxes in the form of short-term payment agreements and, in most instances, waivers of penalties and interest. Contact their Enforcement Hotline at 800-252-8880 to learn about your options for remaining in compliance and avoiding interest and late fees on taxes due. Visit their COVID-19 emergency response webpage for access to online tools, tutorials and other resources.
EXISTING SBA BORROWERS INFORMATION
As of March 26th, 2020 the SBA has approved adjustments to their existing programs as detailed below:
- Existing SBA Disaster Loans – If you have an existing SBA Disaster Loan, the SBA announced that payments can be automatically deferred through December 31, 2020 without prior approval from the SBA. For more information, view the SBA’s announcement.
- Existing SBA Section 504 Loans – If you have a current SBA Section 504 loan as a second lien, the second lien payment may be deferred with approval by the Community Development Corporation (CDC) that provided the original loan. Please contact the CDC directly to request a deferment.
Regardless of which type of relief you choose, consider the following as you apply for assistance and loans:
- If you file joint tax returns, you will need to provide a joint personal financial statement. Both parties will need to sign and date the form.
- Have your tax returns, financial statements, and forms ready by signing and dating the first pages.
- It is important to note that these programs do not provide funds immediately. In the current environment, it is estimated to take 4 to 6 weeks from application for processing, approval and initial funding. We recommend making arrangements with landlords, vendors and other suppliers for additional relief.