Program Summary

The PPP is a federal loan program administered by the Small Business Administration (SBA) that is part of the stimulus package known as the CARES Act. PPP loans help small- and medium-sized businesses affected by the COVID-19 pandemic by assisting with covering costs related to payroll and certain other operating expenses.

Major PPP Milestones

  • December 27, 2020: A second stimulus package is signed into law, providing an additional $284.45 billion in funding for PPP
  • June 5, 2020: Paycheck Protection Program Flexibility Act signed into law, providing significant changes to loan forgiveness rules under PPP.
  • April 24, 2020: Paycheck Protection Program and Health Care Enhancement Act signed into law, providing an additional $310 billion in funding for PPP.
  • March 27, 2020: Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law, providing $349 billion in funding for PPP.

Most Recent Updates

December COVID Relief Bill and the Paycheck Protection Program

First Draw Loans Businesses that did not receive a PPP Loan in 2020 are eligible for a new First Draw Loan

  • Maximum loan amount of $10,000,000
  • Loan amount is based on average monthly payroll costs from either 2019 or 2020 and multiplied by 2.5
  • Must have less than 500 employees
  • Loan term of 5 years with an interest rate of 1%
  • Funds must be used for an eligible purpose within an 8-24 week covered period
  • No payments are required until 10 months after the end of the covered period
  • Loans can be fully forgiven if proceeds are used for an eligible purpose and employee & compensation levels are maintained

Second Draw Loans Businesses that received a PPP Loan in 2020 are eligible for a new Second Draw Loan

  • Maximum loan amount of $2,000,000
  • Loan amount is based on average monthly payroll costs from either 2019 or 2020 and multiplied by 2.5 for most businesses and any business that has a NAICS Code starting with 72 the multiplier is 3.5 times
  • Must have less than 300 employees
  • The business must demonstrate a reduction of at least 25% of their gross receipts in at least one quarter in 2020
  • Loan term of 5 years with an interest rate of 1%
  • Funds must be used for an eligible purpose within an 8-24 week covered period
  • No payments are required until 10 months after the end of the covered period
  • Loans can be fully forgiven if proceeds are used for an eligible purpose and employee & compensation levels are maintained

Streamlined Forgiveness of Loan $150,000 and Less

  • A new application form is in process for these loans and will be released by SBA soon
  • No calculations are required
  • Automatic forgiveness if the borrower can compete certain certifications and provide supporting documentation required

Expanded Use of Proceeds

  • Covered payroll and other expenses. No changes to the original covered expenses, which included payroll costs, mortgage interest, rent and utilities.
  • Covered operations expenditures. Payment for any software, cloud computing, and other human resources and accounting needs.
  • Covered property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
  • Covered supplier costs. Expenditures to a supplier pursuant to a contract, purchase order or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
  • Covered worker protection expenditures. Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020 and the end of the national emergency declaration.

Quick Links


ENTER PPP PORTAL

Example Forms (PDF) Note: We are not accepting paper forms. These are examples of the forms you will complete electronically and will help guide you through the process: