|In preparation for a second round of funding for the SBA’s Paycheck Protection Program (PPP),Oakland businesses are encouraged to prepare to submit applications now. The PPP offers forgivable loans up to $10 million to keep employees on payroll or quickly rehire employees and maintain salary levels. To be forgiven, 75% of the loan must be used for payroll. We expect demand will again be high and recommend early applications.|
Find a PPP Lender
You must apply for PPP through a participating lender. Contact your bank to see if they are taking applications, or use SBA’s find a lender tool at www.sba.gov/paycheckprotection/find.
If you are a Square, PayPal, or Intuit customer, they are now authorized lenders and you can apply for a forgivable PPP loan through their websites. PayPal is currently accepting applications in anticipation of funding.
If you have laid off your employees due to lost revenue and qualify, this loan is also an opportunity to hire them back. SBA will forgive the portion of the loan that is used to cover the first 8 weeks of payroll and certain other expenses, including employer-provided health benefits, paid leave, rent, utilities and mortgage interest. Sole proprietors, independent contractors and self-employed may also qualify. Even if your business is closed as a result of the Shelter in Place order, you may be able to use the Payroll Protection Program to rehire and retain employees, and keep them on your payroll.
The new federal legislation is also likely to include additional funds for SBA’s Economic Injury Disaster Loan program, that provides a cash advance grant of up to $10,000. Owners who decide not to take the loan or who are declined still keep this cash advance as a grant. The amount of the advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The advance will provide $1,000 per employee up to a maximum of $10,000.