Last updated on April 11, 2020
Everybody’s favorite – free money! This part of the CARES Act allows small businesses to borrow 2.5 months of payroll expenses (up to $10 mil) and not have to pay those loans back as long as they are spent on payroll and overhead per the rules the government lays out.
- Who: Small businesses/nonprofits, mostly those with fewer than 500 employees
- What: A loan to cover payroll and a little overhead that turns into a grant if you use it correctly
- When: Applications opened April 3 for small businesses and April 10 for self-employed and independent contractors; ends on June 30 or when money runs out – apply quickly
- Where: SBA approved lenders, preferably your current bank or credit union
- How: Apply at a participating lender. Start with your bank; if they aren’t participating or won’t take your application, try a lender from the list in the Forbes article listing participating lenders
- Why: Free money from the federal government to cover up to 60 days of your business expenses
(Did you know that they can print money whenever they need more? It’s like money grows on trees! Except it grows out of printing presses, apparently.)
Places to Get Official Information
Start Here
- PPP Information Page from the Small Business Administration
- PPP Overview from the Treasury Department
- PPP Borrower Fact Sheet from the US Treasury Department
- PPP Frequently Asked Questions from the US Treasury Department
- An SBA slide deck about COVID-19 relief for small businesses which includes information on PPP
- PPP Borrower Application Form from the Small Business Administration, which is useful for knowing what questions your bank is likely to ask even if they don’t use exactly this form
Extra Credit
- PPP Lender Fact Sheet which can be useful for understanding some of the details of the loan process
- The text of the CARES Act which creates the PPP (absolutely scintillating reading!)
Places to Get Unofficial Information
- Forbes article listing which banks are accepting PPP loan applications (as of April 9)
- A CBS News article showing that at least somebody is getting a PPP loan (as of April 9)
- The US Chamber of Commerce guide to COVID-19 loans