KNOWLEDGE BASE
What assistance is being offered for small businesses impacted by COVID-19?
An update on the Paycheck Protection Program
On December 27, 2020 a second round of stimulus legislation was signed into law. Under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, an additional $284.45 billion was provided in funding for the Paycheck Protection Program (PPP).
U.S. Bank, a preferred SBA lender, is offering both First Draw and Second Draw loans under the new rules. We’ll also allow eligible borrowers the opportunity to request increases on existing loans, but are waiting on further guidance regarding this process from the SBA. Loan originations will run through March 31, 2021 or until funds run out, whichever comes first.
We're now accepting new applications through March 31 or until funds run out, whichever comes first. Apply now. We will accept applications for customers nationwide and for non-customers in states where we operate branches.
The SBA Paycheck Protection Program
The PPP is a federal loan program that helps small and medium-sized businesses impacted by the coronavirus (COVID-19) to assist with covering costs related to payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt. The loan is an SBA 7(a) loan.
Features
- 1.00% fixed interest rate
- Loan amounts up to 2.5x average covered monthly payroll costs, not to exceed $10 million
- No fees
- No prepayment penalties
- No business collateral or personal guarantee required
- Loan forgiveness for eligible payroll, mortgage interest, rent and utilities during the covered eight-week period after origination
- Payments are deferred for six months
The PPP is part of an economic stimulus package known as the CARES Act.
Who can I contact for assistance?
For assistance, visit our Keeping you informed on the Paycheck Protection Program page for answers to frequently asked questions and further contact information.
If you work directly with a U.S. Bank business banker, you may contact them for additional guidance.
How can I learn more about this program?
For additional information, visit: