April 7th, 2020 – The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides forgivable loans available to many Colorado businesses with fewer than 500 employees, including the self-employed, sole proprietors and independent contractors and many non-profits. Loans up to $200,000 are available without a personal guarantee and no collateral is required for loans of $25,000 or less.
Under the CARES Act’s provision for the Paycheck Protection Program, business loans can be up to two months of your average monthly payroll costs from the last year, plus an additional 25% of that amount, not to exceed $10 million.
Paycheck Protection Program loans can be used for payroll, rent, utilities and mortgage interest payments, interest on any other business debt obligation incurred before 2/15/2020 and refinancing an Economic Injury Disaster Loan obtained between 1/31/2020 and 4/3/2020.
To be fully forgiven, you must use 75% of the loan proceed for payroll expenses. You will need to provide documentation verifying the use of the loan funds at the time you request forgiveness. Forgiveness requests may be submitted to your lender 60 days after funding assuming all proceeds have been spent on eligible expenses.
Your best bet is to apply with a bank your business has an existing business relationship with.