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Paycheck Protection Plan (PPP) Overview

As part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), the SBA has initiated the Paycheck Protection Plan.  This plan is designed to provide a direct financial assistance for small and mid-size businesses under 500 employees, including franchisors and franchisees as well as non-profit organizations that have been affected by coronavirus/COVID-19.

 

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 employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities, so that as long as the loan is used to pay these operating expenditures, the loan will convert  to a tax-free grant and will not be required to be re-paid.

The program will be available through June 30, 2020.

Where to Apply

Your FDIC insured bank or federally insured credit union will originate, disperse and administer the loan program.  Check with your institution to verify that they are participating and when will be the earliest you are able to apply.  Lenders may begin processing loan applications as soon as April 3, 2020.

Your banks application may be different, but to download sample SBA application click here.

 

Other resources available through the SBA as a part of the CARES Act:

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for disaster assistance.