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June 29, 2020

More Information Regarding Federal Government COVID-19 Loan Programs

A friendly reminder that the application period for the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP) ends today, June 30, 2020.

The PPP is a forgivable loan program for businesses that meet specific employee retention requirements, with the average loan being about $112,000. Click here for more information from the SBA.

Last week, the SBA also released a new frequently asked questions document about the program and new information about how to calculate PPP loan amounts. That information is here.

And another reminder that while the Federal Reserve’s Main Street Lending Program is not yet fully operational, as Connecting the Dots reported last week, potential borrowers should contact lenders now to start getting ready.

Last week, the Fed added several frequently asked questions relating to calculating total compensation for purposes of limits on a borrower’s employee compensation under the direct loan restrictions, and required borrower financial information and other inputs required by the Main Street Lender Portal.

Potentially interested participants also are encouraged to review the updated program term sheets and forms and agreements.