Amid everything going on with COVID-19, Currency is here to provide information on available economic relief programs launched in response to the pandemic. Currency will continue to provide our employees, customers, and partners with all of the support it can to keep American businesses doing business.
Thank you, stay safe and be well.
The Currency Team
Coronavirus Emergency Loans for Small Businesses – The Paycheck Protection Program (PPP)
To help alleviate the unprecedented economic disruption due to the Coronavirus (COVID-19) outbreak, the President signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020.
The CARES Act allocated an initial $349 billion to help small businesses keep workers employed amid the social distancing and nonessential business shutdown needed to flatten the infection rate. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses with less than 500 employees (subject to affiliation rules).
What is the purpose of the Paycheck Protection Program (PPP)?
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses with less than 500 employees (subject to affiliate rules) to keep their workers on the payroll, pay rent, utilities, and other necessary costs during this period of decreased revenue. The portion of the loan proceeds used by the borrower in the initial eight weeks for payroll, rent, mortgage interest, or utilities will be forgiven.
When can I apply?
Small businesses and sole proprietors can begin applying on April 3, 2020. Independent contractors and self-employed individuals can apply beginning on April 10, 2020.
As of now, the program will be open until June 30, 2020, but the government is advising borrowers to apply as soon as possible given the initial limited funds available through the program.
How can I apply?
You can apply through any existing SBA 7(a) lender or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. The reporting to date indicates that borrowers with a depository and lending relationship with a participating bank may have the best opportunity to get their loan processed quickly.
For the PPP Borrower application form click here
Am I eligible?
To qualify you must be one of the following:
For more information on eligibility click here
How much can I borrow?
The amount of any loan can be up to 2.5 times the borrower’s average monthly 2019 Payroll Costs, not to exceed $10 million.
What are the terms and conditions?
What are the loan forgiveness requirements?
The loan will be forgiven to the extent 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) for the initial 8 weeks after the loan is funded.
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.
For additional information please visit the SBA PPP website here
DISCLAIMER: The foregoing has been prepared for informational purposes only, using public governmental resources like the U.S. Small Business Administration (www.sba.gov) and the U.S. Chamber of Commerce (www.uschamber.com). Currency is not a participating SBA lender or facilitator at this time. If you are seeking information regarding your existing loan through Currency, please contact our Customer Support team via telephone: 877-358-4595, email: [email protected], or online form here.