Circle C HOA completed an application for a PPP loan

Circle C HOA completed an application for a PPP loan and currently waiting to see it has been approved.

What is a PPP loan?  PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll.  First Draw PPP loans can be used to help fund payroll costs, including benefits, and may be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

  • PPP loans have an interest rate of 1%.
  • Loans issues prior to June 5, 2020, have a maturity of two years.  Loans issued after June 5, 2020, have a maturity of five years.
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender.  If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 and 24 weeks).
  • No collateral or personal guarantees are required.
  • Neither the government not lenders will charge small businesses any fees>

First Draw PPP Loan forgiveness terms

First Draw PPP loans made to eligible borrowers quality for full loan forgiveness if during the 8-24 week covered period following loan disbursement:

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll costs and other eligible expenses;
  • At least 60% of the proceeds are spent on payroll costs