SBA Paycheck Protection Program (PPP)
Small Business Administration
U.S. CITIzens and residents
As part of the federal CARES Act, the U.S. Small Business Administration is providing forgivable loans of up to $10 million per company to provide cash-flow assistance to employers who maintain their payroll during this emergency, help workers remain employed and enable affected small businesses to snap back after the crisis.
- Forgivable loans for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount, up to $10 million per company
- For sole proprietors or independent contractors, maximum is capped at $100,000
- 1% fixed interest rate
- Loans will be completely forgiven if funds are used for payroll, interest on mortgage, rent, and utilities, however, at least 75% of the loan must be used for payroll only (in other words, no more than 25% can be used for non-payroll expenses such as rent)
- Loan payments are deferred for six months, however interest accumulates during this time
- Small businesses employing 500 employees or fewer or, if your business is in an industry that has an employee-based size standard through SBA that is higher than 500 employees
- A restaurant, hotel, or a business that falls with NAICS code 72, “Accommodation and Food Services,” and each of your locations has 500 employees or fewer
- Tribal businesses
- 501(c)(19) veteran organizations
- 501(c)(3) nonprofits, including religious organization. Note: Nonprofit organizations are subject to SBA’s employee-based size and affiliation standards. Nonprofit organizations receiving Medicaid reimbursements are not eligible.
- SBA-approved independently owned franchises with under 500 employees
- Sole proprietors, independent contractors, gig economy workers, and self-employed individuals