Provisions contained in the CARES Act authorize the SBA to temporarily guarantee loans under a new 7(a) loan program titled the Paycheck Protection Program (PPP). Loans guaranteed under the PPP will be 100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness.
If you are interested in applying for a PPP Loan, complete the form on this page and Tenet Financial Group will immediately provide a link to our Application portal.
What You Need To Know
- SBA fee waived
- Up to $10 million or 2.5x monthly payroll expense (whichever is less)
- No collateral required, no personal guaranty required
- Covered period: Business must have been operating by February 15, 2020 and covered period is February 15-June 30, 2020
- Interest rate is 1 percent and the term is 2 years (no pre-payment penalty); All payments are deferred for 6 months; however, interest will continue to accrue over this period
- Don’t miss this: NO FICO SCORE REQUIREMENTS!
What can I use this loan for? You should use the proceeds from these loans on your:
- Payroll costs (cash tips, vacation pay, dismissal/severance, group health benefits, payment of retirement benefits) NOTE: Payroll costs are capped at $100,000 on an annualized basis for each employee
- Interest on mortgage obligations (incurred before February 15, 2020)
- Rent (under lease agreements in force before February 15, 2020)
- Utilities (for which service began before February 15, 2020)
- State and local taxes assessed on compensation
What is NOT considered payroll?
- Employees outside the United States
- Qualified sick and family leave (FMLA) – credit is provided under Families First Coronavirus Response Act
- Taxes under Chapters 21, 22 & 24 of the Code
Will my loan be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. You will also owe money if you do not maintain your staff and payroll.
- Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount
- 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.
- 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