PAYCHECK PROTECTION PROGRAM
New $349 billion lending program, modeled on existing SBA 7(a) program, with 100% government Guarantee (as opposed to 75% guarantee for 7(a) loans). Eligibility: Small businesses as defined by SBA size standards (generally up to 500
employees, but up to 1,500 employees depending on the sector and certain
sectors are based on revenue).
- Businesses in the Accommodation and Food Services Sector (NAICS Code 72)
- are eligible with up to 500 employees at each location.
- 501 (c)(3) non-profits with fewer than 500 employees.
- Sole proprietors, the self-employed, and independent contractors.
Regulatory Streamlining:
- SBA’s standard “no credit elsewhere” test is waived
- All lenders (non-SBA lenders to be approved by Treasury and SBA can provide
- loans
- No personal guarantee or collateral required
- Lenders defer fees, principal, and interest for no less than 6 months and no
- more than 1 year
