Demystifying the CARES Act Webinar - April 3, 2020 CARES Act Webinar – BD 4.3.2020 | Page 14

PAYCHECK PROTECTION PROGRAM
(PPP)
 Paycheck Protection Program is a modification of the
SBA’s 7(a) loan program, banks make loans to
businesses that are guaranteed by SBA
 New guidance – PPPL interest rates 1.0%.
 Not more than 25% of the forgiven amount may be for
non-payroll costs.
 Cares Act says unforgiven loan amount repayment term –
10 years
 However, Treasury says unforgiven loan amount
repayment term – 2 years. 2-year term is now rule.
 ONE PPP loan per borrower.
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