Paycheck Protection Program

Forgivable SBA loans for eligible small businesses to
cover payroll costs and other operating expenses.

Small businesses with fewer than 500 employees are encouraged to quickly apply for the newly created Paycheck Protection Program, a loan that provides a direct incentive for small businesses that keep or quickly rehire employees, as well as for certain other expenses.

These loans provide up to 8 weeks of your payroll and benefit costs, plus an additional 25%. SBA will forgive the loan if all employees are retained on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

At least 75% of the funds must be used for payroll. If you reduce the number of employees or have a reduction of more than 25% in wages paid to employees, the amount of loan forgiveness will be reduced.

Here's a quick look as some of the Small Business Administration program's most important features.

Who Can Apply?

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veteran's organizations, and Tribal Businesses described in the Small Business Act if they meet the SBA program size standards.

Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.

When can I apply?

Small businesses and sole proprietors should apply now since demand is high for the program. The program is being applied on a "first-come-first-served basis" and will terminate once the funds made available for the PPP are exhausted — so affected businesses should do their best to proceed quickly. Independent contractors and self-employed individuals can apply beginning April 10. This program will be available through June 30, depending on available funds.

What if I need to rehire employees to qualify for the PPP loan?

You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

What about the other relief programs under the CARES Act?

Borrowers may apply for other SBA financial assistance, including Economic Injury Disaster Loans, provided there is no duplication in the uses of funds. For example, if a borrower uses its PPP loan to pay the salary of certain employees in the 8-week period, it cannot use a different SBA loan to cover those same costs.

However, obtaining a loan under the PPP makes a business ineligible for certain other relief, such as the payroll tax relief that is otherwise available under the CARES Act.

Where can I find additional resources?

Details of the Paycheck Protection Program are subject to change. For additional resources visit the SBA website at

What documents do I need for the loan application?

A copy of the following documents, as applicable to your business:

Other notes:  If you are a seasonal employer, you may elect to provide the above information for the time period of February 15, 2019 through June 30, 2019.  If you are a new business, provide the above information for the time period of January 1, 2020 through February 29, 2020

Contact us today. Our loan experts are ready to assist with your loan application.