Paycheck Protection Program Guidance Now Released

By Caleb Williams, Business & Taxation Attorney, and Erich Paetsch, Creditor’s Rights & Bankruptcy and Litigation Attorney

The US Treasury in coordination with the US Small Business Administration just released its initial guidance for borrowers and lenders on the Paycheck Protection Program loans authorized by the CARES Act. The guidance includes important information for small business, non-profits, independent contractors and others seeking an SBA backed loan under the PPP and clarifies key loan terms.

Small businesses may apply for the loan as soon as April 3, 2020. Independent contractors and the self-employed may apply for the loan starting April 10, 2020. A simple loan application is now available at The US Treasury is anticipating that these loans will be very popular, but the CARES Act does limit the funding of the program to $349 Billion. Businesses should contact their attorney, lender or other financial advisor immediately to begin the application process.

Key loan terms clarified by the guidance and different than permitted in the CARES Act include:

  1. The interest rate on PPP loans is fixed at 0.5% per annum.
  2. Payments are deferred for 6 months, but interest will accrue during this period of deferment.
  3. The portion of the loan not forgiven must be repaid within 2 years.

Applying for a PPP loan may eliminate your eligibility for other relief under the CARES Act. You must evaluate what funding option is best for your business in consultation with your advisors to ensure the best possible outcome for your circumstances.

As the situation is evolving rapidly, please remember to check the COVID resources page at for the most current information available. If you have questions about the PPP or whether your business will qualify for a forgivable loan, please contact Saalfeld Griggs lawyers Caleb Williams ( or Erich Paetsch (



Caleb Williams is a partner in the Business & Taxation practice group and the Agri-Business and Wine & Vine industry groups. Erich Paetsch is a partner in the Creditor’s Rights & Bankruptcy and Litigation practice groups, and the Financial Services and Construction industry groups. The information in this article is not intended to provide legal advice. For professional consultation, please contact Caleb at or Erich at  503.399.1070. © 2020 Saalfeld Griggs PC