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.
- 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
Additional PPP Loan Resources & Links
Helpful links on the Paycheck Protection Program (PPP) that is part of the CARES Act.
- PPP Loan Forgiveness Application as of 5-20-2020
- Interim Final Rule on Loan Forgiveness as of 5-22-2020
- Interim Final Rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities as of 5-22-2020
- US Treasury PPP Site
- SBA PPP Website
- CARES Act - Congress Bill
- CARES Act - US Treasury