USDA has posted a set of FAQs on the Paycheck Protection Program (PPP), a guaranteed loan program administered by the Small Business Administration (SBA). The purpose of the program is to support small businesses and help support their payroll during the coronavirus situation.
The PPP provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can be used to pay interest on mortgages, rent, and utilities.
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).
Loan payments will also be deferred for 6 months. No collateral or personal guarantees are required.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
Click here to access the USDA FAQs. Be sure to scroll down the page to the Paycheck Protection Program section.
Click here to access a PDF of the FAQs provided by Congressman Frank Lucas (OK-3).