Twenty days after the initial relief fund for PPP was open, the government has injected another $320 billion into this program. If you have a pending application make sure to contact your lender to confirm that everything is ready to push the application through.
You should not need to complete a new application, but you should confirm with your lender on next steps.
Paycheck Protection Program application is now available!
Paycheck Protection Program Details
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Fully Forgiven Funds
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
How to Apply
In an effort to assist you in applying for such loans, through Spirit of Texas bank, we are providing a list of loan officers that can work with you or inquire online. There are many lenders who can help with this program, but Spirit of Texas Bank is a very active SBA lender. You will provide your PPP application to the Loan Officer.
President Signs $2 Trillion Coronavirus Relief Package
The House voted to pass a $2 trillion Coronavirus relief package – the largest emergency aid bill in history – that offers a variety of financial relief programs to businesses. There are many provisions and many helpful summaries, so we will leave it to you to decide what might work for you… but we are taking this opportunity to let you know about one specific section that might be particularly important.
Read additional details for borrowers and see if if you qualify and what these funds can be used for.
This stimulus program includes the “Paycheck Protection Program,” a $349 billion SBA lending program modeled on the current SBA 7(a) program. This new version includes up to 100% loan forgiveness under certain conditions, and the forgiven amount is related to actual payroll and other payments – including rent – made from February 15 to June 30. Loans are capped at $10MM, generally cover payroll costs for 2.5 months, and have no principle or interest for six months. There are more details; this is just a very basic summary, so please make sure to do your own research.
In an effort to assist you in learning about and applying for such loans, through Spirit of Texas bank, we are providing a list of loan officers that can work with you or inquire online. There are many lenders who can help with this program, but Spirit of Texas Bank is a very active SBA lender. If you contact one of their loan officers, please tell them that you are a customer of Boxer Property. We recommend starting with a branch near your location, but, given the anticipated volume of applications, this is not a requirement (nor does your business need to be based in Texas); consider moving quickly.
Of course please use your own discretion to decide whether and how to apply for any available financial relief programs. And, while none of the foregoing modifies or waives any provisions of your lease or license, we hope that this information is helpful.
Thank you, Boxer Property