Updated Loan Terms Re the Paycheck Protection Program Under the Newly Enacted Cares Act

Category: COVID-19 Updates

By Attorney Kenneth F. Silver

The Paycheck Protection Program rules are changing quickly. New updates came out yesterday from the U.S. Department of Treasury providing further guidance. A summary Informational Sheet can be located here. Applications can be submitted starting April 3rd. A sample Application form can be found here.

Note there is a change in the offered loan terms. Instead of a ten-year (10) term, it is now two (2) years, and instead of an interest rate of 4% it is now .50%. All interest and principal payments are deferred for six months; however, interest still accrues. Again, no collateral or personal guarantees are required. 

It is expected that the authorized funds for this program will be insufficient for the anticipated number of applications, so it is important to apply with all due speed. It is hoped and believed the government will make additional funds available if necessary. Again, as we have said before, if you have any questions, please do not hesitate to reach out to us.

Additional information about COVID-19 and the recently passed CARES Act can be found on our website at www.hertzschram.com

If you have any questions about the CARES Act or if you have any other business needs, please contact the business and corporate legal team at Hertz Schram or Kenneth F. Silver at (248) 335-5000 if you would like to learn more about your legal rights and options. Although our office is physically closed, we are operating our business remotely. All our attorneys are available via phone by calling our office number at (248) 335-5000

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