Paycheck Protection Program (PPP)
Purpose:
The Paycheck Protection Program ensures that small businesses can continue to pay employees and cover certain costs during this unprecedented health crisis. For up to eight weeks after the loan is made, this program can be used to cover the cost of payroll and other eligible expenses.
Who is eligible?
All businesses—including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors—with 500 or fewer employees may apply. Businesses in certain industries can have more than 500 employees if they meet the SBA's size standards for those industries.
Loan details:
- Thousands of banks, credit unions, and other lenders will be available to make these loans, including lenders in your local area.
- Loans of up to $10 million can be used to cover payroll, paid sick leave for which you are not receiving a tax credit under the Families First Coronavirus Response Act, insurance premiums, rent, utilities, and mortgage interest payments.
- If you retain your full staff and payroll, and use the loan proceeds on payroll and other eligible expenses, all of your loan will be 100% forgiven.
- To apply, visit a participating lender to complete an application and submit the required documentation. The program is open until June 30, 2020.
Small Business Administration Loan Forgiveness
Purpose:
The CARES Act includes forgiveness of loan payments for most existing SBA loans. Once implemented, you will not have to make your next six months of loan payments.
Who is eligible?
Small business owners participating in the 7(a), Community Advantage, 504, or microloan programs.
Details:
- No action is required to receive this benefit.
- Payments due during this six month period will never have to be repaid.
- This benefit can also apply to new borrowers.
- If you are currently having difficulties meeting your obligations, contact your lender about deferring your next payment.
Other SBA Loan Options
Purpose:
Economic Injury Disaster Loans (EIDL) are already available in all fifty states, Washington D.C., and territories to help small business owners continue to operate during this pandemic.
Who is eligible?
Small Businesses, Non-profits, Tribal Businesses, and Cooperatives.
Details:
- After applying, small businesses may be eligible for an up-front advance payment.
- This up-front advance payment does not have to be repaid.
- The full Economic Injury Disaster Loans are offered at a long-term, low-interest rate.