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Paycheck Protection Program

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UPDATE – No longer accepting applications. On May 5, 2021, The SBA has confirmed the PPP general fund is now closed to new applications.

The SBA Paycheck Protection Program (also known as PPP) 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 employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities nd other approved expenses.

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll), and other categories*.

Loan payments will also be deferred for up to six months. 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.

This loan has a maturity of 5 years and an interest rate of 1%.

Terms and conditions are subject to change.

*UPDATE from the second stimulus bill that was passed in February 2021:

In addition to payroll costs, categories of other approved expenses the loan proceeds can be spent on include:

  • Operations expenses: Software subscriptions or services, such as payroll, sales, billing, and bookkeeping.
  • Property damage repairs: Costs due to public disturbances (property damage costs caused by looting or vandalism) in 2020 that insurance did not cover.
  • Supplier costs: Essential purchases for your business  obtained through a contract, order, or purchase order that was in effect before you received the loan.
  • Worker protection expenses: Costs for personal protective equipment (PPE) or property improvements made to comply with local or state health guidelines.

Who Could Apply

First Draw PPP Loan:

If you did not take advantage of the Paycheck Protection program in 2020, a First Draw PPP Loan may be an option for you.

This program is for any small business or non-profit 501(c)3 with less than 500 employees affected by coronavirus/COVID-19. This also includes:

  • Sole proprietorships, independent contractors and self-employed persons
  • Private non-profit organization or 501(c)(19) veterans organizations
  • Tribal enterprise
  • 501(c)6 member organizations
  • Faith-based organizations
  • Businesses in certain industries may qualify if they 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 they employ less than 500 workers per location.

Please see the SBA’s Top-Line Overview First Draw PPP (PDF) for more information.

Second Draw PPP Loan:

Existing PPP Loan borrowers may be eligible for a Second Draw PPP Loan. This includes:

  • Previously received a First Draw PPP loan and will or has used the full amount only for authorized uses
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Please see the SBA’s Top-Line Overview Second Draw PPP (PDF) for more information.

Additional Resources

For more information, please visit the SBA Paycheck Protection Program website or the U.S. Department of Treasury Paycheck Protection Program website.

Approved to offer SBA loan products under SBA’s Preferred Lender programs.

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