Instruction Video on how to apply to the Paycheck Protection Program Loan for Independent Contractors and Small Business Owners
The second round of funding for the Paycheck Protection Program was approved and signed by President Donald Trump today on Friday, April 24th, 2020. This is great news for everyone, but especially small business owners and us self-employed, independent contractors, freelancers, and sole proprietorships.
Cares Act Phase 3.5 Coronavirus Relief Bill
Visit the official SBA Paycheck Protection Program website here.
What is the PPP Loan?
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are 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.
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.
This loan has a maturity of 2 years and an interest rate of 1%.
How to apply to the PPP Loan?
Here is an instructional video that I’ve created to help you with applying to the PPP loan. Since my self-employed business also got hit hard as a result of COVID-19, I need assistance so I’m literally walking through each step in of the Kabbage PPP loan application in this video. So stop waiting, apply now! You can apply through Kabbage here.
You can contact me for professional consulting services here.