On Friday, March 26th the Paycheck Protection Program (“PPP”), one of the key stimulus provisions of the COVID-19 economic recovery initiative was signed into law. The SBA has further clarified details of the program.
PPP is still a key program that we believe will work well for your funeral homes and cemeteries. We recommend you contact your current banking relationship immediately.
Links have been provided at the bottom of this document for the SBA Paycheck Protection Program Application Form as well as the Paycheck Protection Program Information Sheet: Borrowers.
- Starting Friday, April 3rd – small businesses and sole proprietorships can apply
- Starting Friday April 10th – independent contractors and self-employed individuals can apply
- The loan application process will remain open until June 3oth, but it will be on a first-come-first-served basis
Where Should I Apply
- You can apply through any existing SBA lender or through any federally insured depository institution
Amount of PPP Loans
- You should begin with your current banking relationship. – Visit www.sba.gov for a list of SBA lenders
- The loan amount will essentially be capped at 2.5X your monthly payroll and benefit expense. A comprehensive description is included on the Paycheck Protection Program Information Sheet: Borrowers
- Payroll costs are capped at $100,000 on an annualized basis for each employee
- Payroll does include 1099 employees
Loan Forgiveness – Loans will be forgiven so long as –
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
- Employee and compensation levels are maintained
- Please be advised that 75% of the proceeds of the loan must be used for payroll.
Loan Terms – If the loan is not forgiven:
- 2-year term
- 0.50% fixed interest rate
- All payments are deferred for 6 months; however, interest will continue to accrue over this period
- No personal guarantee
- No collateral required
This is still an excellent option for most funeral and cemetery owners in the event you anticipate maintaining staff and payroll levels at or above 75% of 2019 levels. The forgiveness is a significant tax-free benefit. This is the most up to date information we have at the moment. We will notify you as more information becomes available.
If you have questions reach out to us by phone or e-mail and stay informed via our Business Operations Resource Center.
*Please note that as information is updated and modified, terms and conditions are subject to change.