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    The Paycheck Protection Program, created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency.

    • Open to: Small businesses (generally less than 500 employees), 501(c)(3)s, self-employed, sole proprietors, and independent contractors
    • Loans equal to lesser of 2.5 months of average payroll of $10 million
    • Loans by local and national lenders
    • Minimal requirements (no collateral, no personal guarantee)
    • Loans convert to grants equal to amount spent on payroll, rent, mortgage interest, and utilities for the 8 weeks after origination
    • Loan forgiveness is reduced proportionally if employer reduces number of FTEs
    • Loan forgiveness is reduced if employer reduces wages by more than 25%
    • Employer can avoid reduction in forgiveness if they bring back employees and restore wages generally within 30 days and maintain through June 30

    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 in the program.

    Lenders may begin processing loan applications as soon as April 3, 2020.

    Check out this Small Business Guide & Checklist prepared by the U.S. Chamber of Commerce.

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