The Coronavirus Aid, Relief, and Economic Stability Act (CARES Act), became law on March 27, 2020. As the third piece of federal legislation related to the 2020 coronavirus pandemic, it provides approximately $2 trillion in emergency funds to help individuals, families, and businesses facing economic crisis. The Paycheck Protection Program (PPP) is a cornerstone of the CARES Act relief package includes guaranteeing up to $349 billion through the Small Business Administration (SBA) to fund small business loans.

Below is a short summary, a more detailed summary can be found here.

SMALL BUSINESS PAYCHECK PROTECTION PROGRAM

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

FULLY FORGIVEN

Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

MUST KEEP EMPLOYEES ON THE PAYROLL - OR REHIRE QUICKLY

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.

ALL SMALL BUSINESSES ELIGIBLE

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.

WHEN TO APPLY

Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.

Apply Online Here: https://covid19relief.sba.gov/#/

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. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.

The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.