What is the Paycheck Protection Program?

The Paycheck Protection Program (PPP) is a U.S. Small Business Administration (SBA) federal loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll (or rehired) and the money is used for payroll, rent, mortgage interest, or utilities.

Congress is likley to pass a PPP extension.

The authority of SBA to approve PPP loan guarantees expired at midnight, EDT, on Saturday, August 8.  

Congress is currently considering major changes to the PPP loan program including allowing new loan applications, allowing borrowers to obtain a second loan, and "streamlining" the forgiveness process for most borrowers.  

Who can apply?

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations, and 501(c)(19) veterans organizations affected by coronavirus/COVID-19. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.

Will I have to pay back this loan?

The loan may be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities and you have not reduced your payroll by more than defined amount. Please see the Forgiveness page for important information on the status of the forgiveness program.

The purpose of this loan/forgiveness is to enable and encourage small businesses to protect their employees. Loan payments will be deferred for six months, and no collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.  Click on the forgiveness link below for more information.

How do I apply?

Click on the Apply link below to go to our new or update an application page.