What Is the Paycheck Protection Program?

Recently added as an SBA loan program, the Paycheck Protection Program provides federally-guaranteed loans to eligible small businesses. Loans can be up to $10 million and may be partially forgivable. These loans are intended to help small businesses retain employees throughout and after the Coronavirus (COVID-19) crisis.

As dictated by the CARES Act, the SBA will commit to helping small business owners across America borrow $349 billion.

If you'd like to learn more about the program, please read our application tips and frequently asked questions below.

Benefits of an SBA-Backed Paycheck Protection Program Loan

  • Low Interest Rate - Just 1% APR for the entire life of your Paycheck Protection Program loan.
  • 100% Loan Forgiveness - For qualified loan uses like payroll, mortgage interest, rent, and utilities.
  • Defer Payments - Payments deferred for the first 6 months, and up to 12 months for some qualifying borrowers.
  • 2-Year Terms Available - Spread out payments over a two-year term to make your loan even more affordable.

Payment Protection Program Loan

All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply.

Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click here for additional detail).

The CARES Act has expanded the eligibility criteria for borrowers to qualify for a Paycheck Protection Program loan. Any qualified small business, nonprofit organization, veterans organization, or tribal business is eligible to review a loan if the business employs 500 or fewer people.

The loan may only be used for:

  • Payroll costs and employee commissions or similar compensations
  • Insurance premiums and group healthcare benefits during paid sick, family, or medical leave
  • Mortgage interest payments (but not prepayment or payment of mortgage principal)
  • Commercial space rent and utilities
  • Interest on any other debt obligations incurred before the covered period

You may be eligible to have all or a portion the loan principal forgiven if you use the funds for certain qualifying costs incurred and payments made for payroll, mortgage interest, rent and utilities during the first eight weeks following the date the loan is made. You will have to provide documentation.

Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to the likely high subscriptions, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. Loan payments will be deferred for 6 months. While payments are deferred, interest will continue to accrue.

  • The date you started your business - You need to have been in business on February 15, 2020
  • Documentation verifying your average monthly payroll costs
  • Payroll costs include salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee).
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; an allowance for separation or dismissal.
  • Payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit.
  • State and local taxes assessed on compensation.
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Application tips

Documents Needed And Format

In order to help expedite the application process, please have the following documents available for upload as applicable to your particular type of business or organization:

  • Front and Back of Government Issued ID: Driver’s License, Passport, Military, etc. (required)
  • Payroll Register for the full 2019 year (required)
  • Payroll Register for all available months in 2020 (required)
  • All 2019 IRS Form 941s or 2019 IRS Form 944s (for applicants with employees)
  • 1099-MISC (for applicants that are independent contractors)
  • 2019 IRS 1040 Schedule C (for applicants that are self-employed)
  • 1099-MICS for each self-employed owner (for applicants that are self-employed)

Please ensure all uploaded documentation is legible and preferably in .pdf or .jpg format.

No Duplicate Applications

Please do not include other versions of the Paycheck Protection Program application, as this process will guide you through all necessary questions contained on the official application and complete one for you. Duplicate applications may cause delay in processing and approval.

System Limitations

Please be aware that this website is currently under heavy load as many applicants are working through the system at the same time. If you encounter difficulties with the website allowing you to progress or upload documents, please be patient and re-try your submission as time permits. Attempting to re-log into the site may help however if problem persist, waiting to continue during off-peak hours (9:00 AM – 7:00 PM) may help.

Ready to Apply?

Apply now to access the $349 billion in federal funding to help small businesses keep workers employed amid the pandemic and economic downturn.

Apply Here