The Paycheck Protection Program (PPP) is a small business loan program that is created to help small businesses get through COVID-19 while retaining their employees. The program includes no fees. The loan is more like a grant as it can be 100% forgivable. To have the full loan amount forgiven, funds must be used for payroll, mortgage interest, rent, utilities. Since the primary focus of PPP is employee retention, 75% of the amount forgiven must have been utilized for payroll. If employees have been fired, you must quickly rehire the employees in order to qualify for forgiveness. The loan forgiveness will be reduced based on decreases in employees or salaries. These loans can be deferred for up to six months and require no collateral.
According to the Small Business Association:
Most business loan providers will be able to assist you in applying for the Paycheck Protection Program. Lenders are processing loan applications now until June 30th, 2020. There are limited funds available for the PPP — do not delay in applying for the loan. Congress is working on increasing federal funding for the program.
The document below shows the list of Paycheck Protection Program Lenders in Minnesota. If your preferred lender is not on the list, give them a call to confirm whether or not they can offer PPP loans. New lenders are being added as providers on a frequent basis.
If you have any policy questions regarding state and federal action on COVID-19, contact us and we will do our best to provide guidance.