April 7, 2020
Money borrowed under the Small Business Association Paycheck Protection Program (PPP) that is used for expenses relating to payroll, mortgage interest, rent, or utilities in the eight weeks following the date of origination can be forgiven. To be forgivable, you must use at least 75% of your loan amount to cover payroll costs. Any amount that is not forgiven will convert to a loan that is repayable under the terms of your loan agreement.
Another factor of loan 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. Companies have until June 30, 2020 to restore full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
For more information on the Paycheck Protection Program visit https://www.firstunited.bank/business/lending/paycheck-protection-program/. First United Bank is a preferred lender with the SBA and we are ready to help you get your business back on track. We know things feel uncertain right now, but rest assured—You’re Covered.