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What is the Paycheck Protection Program (PPP)?

The Paycheck Protection Program is a loan program for small businesses impacted by the COVID-19 pandemic.

What is the Paycheck Protection Program?

The Paycheck Protection Program is a loan program that originated from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This is a nearly $350-billion program intended to provide American small businesses with twenty-four weeks of cash-flow assistance through 100 percent federally guaranteed loans. The loans are backed by the Small Business Administration (SBA) You can read the bill in its entirety here.

Program highlights

  • All small businesses are eligible
  • The loan has a maturity rate of 2 years and an interest rate of 1%
  • No need to make loan payments for the first six months
  • No collateral or personal guarantees required
  • No fees
  • The loan covers expenses for eight weeks starting from the loan origination date (if the obligations began before December 31, 2020)
  • The loan can be forgiven and essentially turn into a non-taxable grant

Related: Find Small Business Financial Relief During the Coronavirus

Additional PPP Loan Resources & Links

Helpful links on the Paycheck Protection Program (PPP) that is part of the CARES Act.