Loan Details and ForgivenessThe loan will be fully forgiven if the funds are used for payroll costs,interest on mortgages, rent, and utilities (due to likely highsubscription, at least 60% of the forgiven amount must have been usedfor payroll).Frequently Asked Questions about PPP Loan Forgiveness (08-11-2020)PPP loans have an interest rate of 1%.Loans issued prior to June 5 have a maturity of 2 years. Loans issuedafter June 5 have a maturity of 5 years.Loan payments will be deferred for six months.No collateral or personal guarantees are required.Neither the government nor lenders will charge small businesses anyfees.Loan ForgivenessForgiveness is based on the employer maintaining or quickly rehiringemployees and maintaining salary levels. Forgiveness will be reduced iffull-time headcount declines, or if salaries and wages decrease. Theloan forgiveness form and instructions include several measures toreduce compliance burdens and simplify the process for borrowers,including: • Options for borrowers to calculate payroll costs using an“alternative payroll covered period” that aligns with borrowers’ regularpayroll cycles • Flexibility to include eligible payroll and non-payrollexpenses paid or incurred during the 24-week period after receivingtheir PPP loan • Step-by-step instructions on how to perform the calculationsrequired by the CARES Act to confirm eligibility for loan forgiveness • Borrower-friendly implementation of statutory exemptions fromloan forgiveness reduction based on rehiring by June 30 • Addition of a new exemption from the loan forgiveness reductionfor borrowers who have made a good-faith, written offer to rehireworkers that was declined
Payroll Protection Program Loa
