What is the Paycheck Protection Program?
Congress created the PPP as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to provide federal assistance for small businesses and other qualifying entities impacted by COVID-19. The PPP provides forgivable loans of up to $10 million per borrower that can be used for payroll, rent, and other costs.
All or part of a PPP loan can be forgiven as long as the expenditures meet certain criteria. Otherwise, a PPP loan has an interest rate of 1% and a maturity of 2 or 5 years, depending on when it was issued. Regardless, loan payments are deferred for up to 10 months after the end of the covered period. PPP applicants do not have to provide collateral or personal guarantees, nor are they subject to loan fees.
As your trusted advisors, we are committed to keeping you well-informed with any new legislation passed by Congress or other authorities as well as any new pronouncements by the Department of Treasury that may affect you. Please do not hesitate to reach out to KHA with any additional questions you may have.
If you are interested in understanding how the forgiveness portion of the PPP Loan is calculated, the KHA Management Consultants team has dedicated resources to understanding this and are willing and available to assist KHA clients. Please reach out to understand how KHA might help you.
Contact the KHA Management Consultants team to assist you with your Paycheck Protection Loan Forgiveness.