Paycheck Protection Program Loan Information

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 employee retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness. How To Apply You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. View a list of lenders participating in the Paycheck Protection Program by state. If you wish to begin preparing your application, you can download a copy of the PPP borrower application form (revised June 24, 2020) to see the information that will be requested from you when you apply with a lender. Supplemental Materials

  • Frequently Asked Questions for Lenders and Borrowers (06/25/2020)

  • How to Calculate Loan Amounts (06-26-20)

  • Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program

Affiliation Rules

  • Paycheck Protection Program Affiliation Rules

  • Interim Final Rule for Applicable Affiliation Rules

Recovery Information in Languages other than English LEARN MORE

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).

  • PPP loans have an interest rate of 1%.

  • Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.

  • Loan payments will be deferred for six months.

  • No collateral or personal guarantees are required.

  • Neither the government nor lenders will charge small businesses any fees.

Loan Forgiveness Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:     •    Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles     •    Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 24-week period after receiving their PPP loan     •    Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness     •    Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30     •    Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

  • Click here to download the Paycheck Protection Program EZ Loan Forgiveness Application (06-16-2020)

  • Click here to download instructions for the Paycheck Protection Program EZ Loan Forgiveness Application

Who Can Apply

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

  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)

  • Sole proprietors, independent contractors, and self-employed persons

  • 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

  • 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

Lender Forms and Guidance

Paycheck Protection Program Interim Final Rules SBA has issued the following Interim Final Rules related to the Paycheck Protection Program:

  • Letter from the Administrator

  • Paycheck Protection Program

  • Affiliation Rules

  • Additional Eligibility Criteria and Requirements for Certain Pledges of Loans for the Paycheck Protection Program

  • Promissory Notes, Authorizations, Affiliation, and Eligibility

  • Seasonal Employers

  • Disbursements

  • Requirements – Corporate Groups and Non-Bank and Non-Insured Depository Institution Lenders

  • Nondiscrimination and Additional Eligibility Criteria

  • Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan Request

  • Requirements for Loan Increases for Partnerships or Seasonal Employers

  • Eligibility of Certain Electric Cooperatives

  • Treatment of Entities with Foreign Affiliates

  • Second Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan and Lender Reporting

  • Requirements – Loan Forgiveness

  • SBA Loan Review Procedures and Related Borrower and Lender Responsibilities

  • Eligibility of Certain Telephone Cooperatives

  • Interim Final Rule on Revisions to the First PPP Interim Final Rule

  • Additional Revisions to First PPP Interim Final Rule

  • Interim Final Rule on Revisions to the Third and Sixth Interim Final Rules

  • Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule

  • Additional Eligibility Revisions to First PPP Interim Final Rule

  • Interim Final Rule on Certain Eligible Payroll Costs (Fishing Boat Owners)

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