Business Options for Financial Relief: Paycheck Protection Program (PPP)
What is it?
The PPP provides small business loans that can be up to 2.5x the business’s average monthly payroll costs, up to $10 million. Payroll costs may include salaries, bonuses, retirement and healthcare benefits and parental leave. Loans will be given on a first-come, first-serve basis and your business must apply before June 30th.
Is my business eligible?
This program is for US-based businesses with under 500 employees. To qualify, your business must have been substantially impacted by COVID-19 and in place prior to February 15, 2020.
How do I apply?
You must apply through an SBA-certified lender, who will be given delegated authority to quickly process PPP Loans.
Before you apply, be sure to:
- Gather documentation on your business’ payroll, rent, utility payments and mortgage for the last 12 months.
- Gather completed 2019 financials, including P&L and balance sheet.
- Determine which employees are paid more than $100,000 per year.
- Calculate the total payroll for employees paid during the applicable base period, excluding amounts paid above a prorated annual salary of $100,000.
Find an eligible lender using the search tool here.
Once you’ve found your lender, the PPP application form can be found here.
*Please note this information is for informational purposes only and is current as of April 7, 2020 based on our understanding of these programs. It can and likely will change — therefore please visit the source directly for the most updated and accurate information. Before making any financial decisions, please consult your lawyer, accountant, or financial advisor.