Payroll Protection Plan (PPP)

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.  The U.S. Small Business Administration (SBA) is currently offering:

Updated PPP Lender forms, guidance, and resources are available at www.sba.gov/ppp and www.treasury.gov/cares.  

February 22, 2021 Update: 

SBA Prioritizes Smallest of Small Businesses in the Paycheck Protection Program

 January 13, 2021 Update:

SBA is currently accepting Paycheck Protection Program PPP loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets, which includes approximately 5,000 institutions, including community banks, credit unions, and farm credit institutions. Lender Match can help you find a participating lender. The program will open to all lenders on January 19, 2021.  

SBA also offers additional Coronavirus relief. 

May 19, 2020 Update:

PPP Forgiveness Application released. The form and instructions for borrowers on how to apply for forgiveness of their PPP loans and can be viewed and downloaded here.

The SBA will resume accepting Paycheck Protection Program (PPP) applications from participating lenders on Monday, April 27, 2020 at 8:30am MDT.

Friday, April 24 update:

Congress appropriated more funds for the Paycheck Protection Program. The additional $310B appropriation for PPP includes specific allocations for small financial institutions and community credit unions while also providing funds for minority-owned businesses. These forgivable loans will be awarded on a first-come, first-served basis and Colorado businesses are encouraged to apply promptly. More Information Here

PPP History

The CARES Act allocated $670 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, re-opened the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021. 

Current Program Details

(Source : U.S. Small Business Administration)

 

SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021.

SBA is currently accepting First Draw PPP loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets, which includes approximately 5,000 institutions, including community banks, credit unions, and farm credit institutions. Lender Match can help you find a participating lender. The program will open to all lenders on January 19, 2021.

Who is Eligible:

The following entities affected by Coronavirus (COVID-19) may be eligible:

  • Sole proprietors, independent contractors, and self-employed persons
  • Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500
  • Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location

Loan Details:

  • The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

    SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

    • PPP loans have an interest rate of 1%.
    • Loans issued prior to June 5, 2020 have a maturity of two years. Loans issued after June 5, 2020 have a maturity of five years.
    • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
    • No collateral or personal guarantees are required.
    • Neither the government nor lenders will charge small businesses any fees

How and When to Apply:

You can apply for a First Draw PPP Loan until March 31, 2021. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from participating community financial institutions (CFIs). All new First Draw PPP Loans will have the same terms regardless of lender or borrower.

To be matched with a participating PPP lender, visit SBA Lender Match.

If you wish to begin preparing your application, you can download the following PPP borrower application form to see the information that will be requested from you when you apply with a lender:

 

Helpful Tools & Resources

Quick Guide to Apply for Loans

1

Verify your business’s eligibility

2

Review the Prepare, Apply, Comply Guide

3

Review the Application

and gather the necessary materials such as payroll tax filings, proof of lease payments, proof of mortgage payments, and proof of utility payments
4

Contact your accountant and/or bank

Get in contact with your accountant and/or bank that pays out your business’s payroll. Ask your lender if it is authorized to process your Paycheck Protection Program loan. If you are not connected to an authorized lender, find an eligible lender here