June 4 Update
House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.
According to the SBA’s website for the Payroll Protection Program (PPP):
- Applications may be open as early as April 3rd,and lenders may be able to approve the applications the same day;
- The unforgiven portion of any PPP loan will have a maturity of 2 years and a 1.0% interest rate; and,
- The SBA is imposing another loan forgiveness condition – “due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll”.
Here’s a link to the sample application form: https://www.sba.gov/document/sba-form–paycheck-protection-program-ppp-sample-application-form.