Paycheck Protection Program


The Paycheck Protection Program (PPP) extends loans to provide an incentive for small businesses and non-profit organizations to keep their workers on the payroll. Importantly, SBA will forgive the loans if all employees are kept on the payroll for eight weeks and the loan funds are used for payroll, and other designated operating expenses.

Loan amounts are calculated as up to eight weeks of average monthly payroll (based on 2019 figures) including benefits, plus an additional 25% of that amount used for rent, mortgage interest, or utility payments made before February 15, 2020, up to a maximum of $10 million. Applications for the loan are processed through SBA 7(a) lenders. Click on the PPP application and go to the list of participating lenders to find a lender near you.

Some other key program details include

  • Terms: fixed 1% interest rate and maturity of two years with six-month deferral (interest will accrue)

  • Businesses must have been in operation on 2/15/20

  • The loan application process is now live for all small businesses except for independent contractors and self-employed individuals, who can apply starting on April 10, 2020. Application deadline for all businesses is June 30, 2020.

  • Re-Hiring: You have until June 30, 2020, to restore your full-time employment and salary levels for any changes made between February 15, 2020, and April 26, 2020.

  • No collateral or personal guarantee requirement, or borrower or lender fees payable to SBA

  • Payroll costs will be capped at $100,000 annualized for each employee

For more information, you can also check out the SBA’s FAQ document as well as the Treasury Dept program overview.