The Paycheck Protection Program
The CARES Act established the Paycheck Protection Program (PPP). This program allows the Small Business Administration to make forgivable loans to eligible companies. Generally, businesses with fewer than 500 employees, that have been impacted by the COVID-19 crisis, may qualify to receive loans.
Acceptable Uses for PPP Loans
These loans may be used to pay for:
- wages
- rent
- utilities
- fixed debt payments
- other approved operating expenses
PPP Loans Are Forgivable
As long as the proceeds received from the PPP loan are used on a preauthorized expense, and the recipient of the loan maintains employment levels consistent with terms of the program, the loan may be forgiven in part or in total. Any amount of the loan that is forgiven is considered a non-taxable event. We encourage small businesses to evaluate their ability to receive these non-taxable grants.
How to Apply for a PPP Loan
Loan applications will be executed through approved SBA lenders. The SBA is working with these banks to establish an application process. We expect lenders to begin accepting and processing PPP loan applications shortly.
