Two things that need to be emphasized about the PPP loan:
1) customers must be able to apply on Chase Business Online. They won’t be able to call us or go through their BRM. If they’re not already set up, they can enroll in online banking. And
2) Chase applicants may need to be a Chase Business deposit account customer as of February 15, 2020, and be able to apply online. This information will be updated and may change as the Small Business Administration publishes guidance about the lending program. We’ve advised our clients to check our Covid-19 Business Update site regularly.
The next step is for the Small Business Administration (SBA) to issue guidance to banks such as Chase on how and when to provide much needed loans to our small business clients under the Act. We will update this information as we learn more.
This is our current understanding of the provisions in the bill for Small Business owners:
- Paycheck Protection Loan Program expands loan eligibility under the SBA 7a program with the intention to assist businesses with covering costs related to payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt.
- Borrowers will need to certify that they’ve been impacted. There will be no personal guarantees or collateral associated with the loan. Detailed application requirements are still to be determined.
- Loan amount maximum is 2.5 times average monthly payroll or up to $10 million.
- There will also be a payment deferral and loan forgiveness program.