The Paycheck Protection Program ("PPP") authorizes up to $349 billion in forgivable loans to small business to pay their employees during the COVID-19 crisis. All loans terms will be the same for everyone.
The loan amounts will be forgiven as long as:
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments are deferred for six months.
All businesses - including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors - with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employee if they meet SBA employee-based size standards for those industries.
For this program, the SBA's affiliation standards are waived for small businesses (1) in the hotel and food services industries; or (2) that are franchises in the SBA's Franchise Directory; or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.
You will need to complete a Paycheck Protection Program loan application and submit the application with the required documentation.
You can download an application at the bottom of this page.
The program expires June 30, 2020.
You will need to provide payroll documentation for the small business Paycheck Protection Program:
No. The usual SBA requirement has been waived (the "Credit Elsewhere" requirement).
Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and we need time to process your loan request.
You should use the proceeds from this loan on your:
Payroll costs include:
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
You will owe money when your loan is due if you use the loan for anything other than payroll costs, mortgage interest, rent and utilities payments over the eight weeks after getting the loan. Due to a likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
You will also owe money if you do not maintain your staff and payroll.
You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.
All payments are deferred for six months; however, interest will continue to accrue over this period.
In two years.
Yes. There are no prepayment penalties or fees.
No. No collateral is required.
No. There is no personal guarantee requirement.
**However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.**
As part of your application, you need to certify in good faith that: