An Update Regarding the Paycheck Protection Program

On March 31, 2020, the Department of Treasury (the “Department”) issued guidance on implementing the Paycheck Protection Program (PPP). 

Very simply, I encourage all readers to go the attached link:

 Within that site are four links including: 

  1. Top-line overview
  2. Guidance for lenders
  3. Guidance for borrowers
  4. The application banks are to use for the PPP Loan

 Items of note: 

  1. Starting April 3, 2020, small businesses and sole proprietorships can apply.
  2. Starting April 10, 2020, independent contractors and self-employed individuals can apply.
  3. The Department encourages borrowers to apply as quickly as possible because there is a funding cap. 
  4. The Department  encourages borrowers to consult with their local lender as to whether it is participating.
  5. All loans will have the same terms regardless of lender or borrower.
  6. The exclusion of employees compensated over $100,000 is clarified to be that the amount over $100,000 is excluded, not the entire compensation.
  7. Borrowers will have until June 30 to restore staffing levels and wage levels for any changes made between February 15, 2020 and April 26, 2020, or the amount of the loan forgiveness will be reduced.
  8. The interest rate on the loan was reduced from 4.00% to 0.50%.
  9. Any portion of the loan that remains unforgiven is due in 2 years, a change from the 10 years described in the legislation.
  10. The guidance provides a list of things that borrowers will need to document and certify.

We will continue to monitor the implementation of the CARES Act over the coming days, and we will issue clarifying statements.  


W. Karl Baker, CPA, spends his time thinking about ways to help organizations with sound financial decisions, including improving revenue cycle management, and access to capital.  Find more information at and  Karl can be reached at (781) 854-2248 or


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