The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

"Am I Eligible for PPP?"

In order to support America’s small businesses due to COVID-19, the program extends low-interest loans of up to $10 million to eligible businesses, a portion of which may not need to be repaid. If employers maintain their payroll and use loan funds for allowed expenses like payroll, rent, and utilities for the first 8 weeks after the loan is issued, the loan amount is forgiven.

Loan Forgiveness

Expenses that will help qualify for Loan Forgiveness are:

  • Number of Staff:
    Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll:
    Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • 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.
  • PPP Loan Terms:
    6-month deferment on payment
    24-month LOAN TERM
What can the money be used for?
  • Cover Payroll Cost/ Expenses
  • Pay Interest on Mortgages incurred before 2/15/2020
  • Pay Rent, under lease agreements in force before 2/15/2020
  • Pay Utilities for services incurred before 2/15/2020
  • Rehire your furloughed employees

How much can You borrow?

Most Businesses

Average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee

Small Businesses

Average monthly payroll from February 15 to June 30, 2019, excluding costs over $100,000 on an annualized basis for each employee

New Businesses

Average monthly payroll from January 1 to February 29, 2020, excluding costs over $100,000 on an annualized basis for each employee

How to defer payments

You can submit a request to the lender that is servicing the loan. The request should include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on the 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 forgiveness within 60 days.