Paycheck Protection Program

by | May 4, 2021 | COVID-19, Paycheck Protection Program

The Paycheck Protection Program (PPP) is an SBA Loan that helps businesses keep their workforce employed during the COVID-19 crisis.  The government will forgive all PPP loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. 

Who Can Apply?  

  • Any small to mid-sized business or nonprofit organization with either less than 500 employees or meeting the size standard classification.  
  • Any business with a NAICS code beginning in 72 (food service) with more than one location and less than 500 employees at any location.  
  • Sole proprietors, independent contractors, and self-employed persons.  

How to Apply? 

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. NOTE:  We have heard reports of extended approval processes with some lenders. Contact our Small Business Solutions team if you need assistance selecting a lender or completing your application.    

SBA’s Find a Lender 

SBA’s Online Application Form

The program provides cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans are forgiven, which helps workers remain employed, as well helping affected small businesses and our economy snap-back quicker after the crisis.  

PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020. 

 Frequently Asked Questions shared by US Treasury 

NOTE:  The CARES Act also offers small businesses an Employee Retention Credit as well as the opportunity for Delay of Payment of Employer Payroll Taxes. These are great options if your organization does not qualify for the Paycheck Protection Act but cannot be used in conjunction with the program.    

Paycheck Protection Program Calculators

The Paycheck Protection Program has three possible scenarios for calculating maximum loan amounts depending on how long the business has been in operation and whether it’s seasonal. The below calculators will tell you how much you’ll be able to borrow based on your current business status: