One of the more significant benefits for small business interests contained in the recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act, the Paycheck Protection Loan Program (PPP) officially began its application process today, and late last evening, the Small Business Administration released its Interim Final Rule for the program. It would appear that the interest rate (previously announced at 0.5% and capped at 4% in the CARES Act) has been increased to 1%. Further, in the Interim Final Rule, on page 8 (Section III, Chapter 2, Subsection e), a methodology for calculating how much of a loan you may be eligible for is provided. Beyond this information, we wanted to ensure that you have a ready summary to refer to. In that vein, we would submit the following: PPP loans are based on 2.5 times your monthly payroll for 2019, and payroll costs include paid medical health insurance and retirement contributions as well as the monies an owner may take as compensation. If an employee is paid more than $100,000, that employee is included in the payroll costs, but the amount above that $100,000 threshold should not be included in the monthly payroll average calculation. PPP loans may also be used for rent, utilities, interest of covered mortgages and do not require any personal guarantees. Additionally, loan payments are deferred for the first six months and the program allows for the loan to be completely forgiven so long as non-payroll costs do not exceed 25 percent. Any portion of the loan that is not forgiven will convert in 2021 to a 2-year term loan with a fixed interest rate of 1.0%. PPP loan applications can be taken by any SBA-approved banks or lenders and there should be no fees charged for the applications. To apply or to get more information, we recommend you contact your bank.