SBA's Payroll Protection Program
Update: The deadline for applying for the Payroll Protection Program (PPP) was extended to August 8, 2020. SBA data shows that more than 6,700 Oakland businesses have been approved for PPP loans.
If you have not yet applied, please do so today through a participating lender. If you’ve been turned down by one lender, please reach out to another participating lender today.
SBA's Paycheck Protection Program offers loans of up to $10 million in partnership with select banks. This is a forgivable loan to keep employees on payroll and maintain salary levels for up to 24 weeks. To be forgiven, at least 60% of the loan must be used for payroll, including the cost of employer-provided health benefits. If you've already laid off your employees, this loan provides the opportunity to hire them back.
- Less money is required to be spent on payroll. Originally 75% of the loan had to be used for maintaining payroll in order for the loan to be forgiven. That threshold is now 60% – allowing up to 40% to be used on rent, mortgage, interest and utilities.
- More time to spend the money. Borrowers will now have 24 weeks to use their PPP funds, instead of the original 8 weeks.
- More time to rehire staff. Borrowers now have until December 31 to achieve the staffing mandate of maintaining the average number of employees they had on payroll as of February 15.
- More time to repay. For those loans that are not fully forgiven, borrowers now have five years to pay back loans made on or after June 5. For those with loans made prior to June 5, check with your lender about entering an agreement to extend your repayment period.
PPP Loans Frequently Asked Questions - May 27, 2020 (includes information on loan forgiveness)
Who was generally eligible:
- Small businesses (generally those with less than 500 employees)
- Sole proprietors, independent contractors and self-employed persons
- 501 (c)(3) Nonprofits, 501 (c)(19) veterans organizations
- Faith-based organizations, regardless of whether they provide secular social services
Frequently Asked Questions- May 6, 2020
SBA guidance to Self-Employed that need a PPP Loan (see page 4)
On May 15, the Payroll Protection Program Loan Forgiveness Application and detailed instructions were released. The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers.