Paycheck Protection Loans
Our goal is to assist your small business in getting an emergency loan through the CARES Act's
Paycheck Protection Program, administered through the SBA, to ensure that you can continue
to make payroll during the coronavirus pandemic.
The program is now out of funds, unless congress allocates more
$349 Billion Total
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
Individual Loan Amount
The loan amounts will be forgiven if proceeds are used to cover 8 weeks of payroll costs, most mortgage interest, rent, and utilities; and employee and compensation levels are maintained after the loan is made.
Where to Apply
You can apply through any existing SBA lender or any federally insured depository institution; note that you can only apply once and many banks will struggle with the large volumes, so act quickly.
What is the Paycheck Protection Program?
The Paycheck Protection Program authorizes the SBA to provide $349 billion in forgivable loans (loans you don't have to pay back if you meet certain conditions) to small businesses to pay their employees during the COVID-19 crisis.
The size of the loan can be up to 2.5 times your average monthly payroll costs from last year and capped at $10 million. Note that salaries are capped at $100,000 per employee.
The entire loan amount will be forgiven if you can maintian your payroll through June 30, 2019, or if you can rehire ALL employees you had to let go during that period. Otherwise, you might consider taking out a lower loan amount so that you don't have to carry the remaining loan amount.
$349 Billion Made Available
Choosing The Right SBA Loan Provider Is Critical
As of April 3rd, the official start of the Paycheck Protection Program application period, most U.S. banks aren't ready to accept and handle the avalanche of applications. Many banks are still waiting for more clarity from the U.S. Treasury.
Unfortunately, many small businesses don't have the time to wait. A Goldman Sachs survey of Small Business owners indicates that only half of them have the necessary cash on hand to survive more than three months given current conditions.
Unlike other types of loans, each business can only apply with one institution for a Paycheck Protection Loan and must certify so as part of the loan agreement. Therefore, choosing the right institution will be critical in quickly getting your loan.
Good Faith Certification
In addition to completing a Paycheck Protection Loan Application and providing payroll documentation, lenders will also ask for a good faith certification that:
- The current economic conditions make the loan request necessary for you to continue business operations
- You will only use the loan to retain workers, maintain your payroll or pay qualifying expenses
- You don't have another duplicative application with another institution, or have already received funds from the program
Additional Resources and Programs for Small Businesses
SBA COVID-19 Resources
Other Government Resources
Additional Resources for SBs and Banks