SBA Paycheck Protection Program (PPP)

Paycheck Protection Program Overview

The Paycheck Protection Program (PPP) 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 employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities. The Paycheck Protection Program will be available through June 30, 2020.

You can apply for the Paycheck Protection Program through a bank, credit union, or other government guaranteed lender.

Businesses, even without a personal guarantee or collateral, can apply one of these loans as long as they were operational on February 15, 2020, and had paid employees at that time (even if the owner is the only employee). The SBA’s 500-employee threshold includes all types of employees: full-time, part-time and any other status.

The Paycheck Protection Program offers loans for the following types of businesses experiencing revenue disruption as a result of COVID-19:

  • Small businesses with fewer than 500 employees.
  • Select types of businesses with fewer than 1,500 employees.
  • 501(c)(3) non-profits with fewer than 500 workers.
  • Some 501(c)(19) veteran organizations.
  • Self-employed workers, sole proprietors and freelance or gig economy workers.

Eligible expenses include:

  • Payroll costs (excluding the prorated portion of any compensation above $100,000 per year for any person. Payroll costs include salary, commissions, tips; certain employee benefits including sick leave and health care premiums, and state and local taxes;
  • Mortgage interest (not prepayment or principal payments) and rent payments on mortgages and leases in existence after February 15, 2020;
  • Utilities such as electricity, gas, water, transportation, phone and internet access for services that began before February 15, 2020; and
  • Additional wages paid to tipped employees.

Source: KC Sourcelink COVID-19 Resource Page