Small Businesses

Paycheck Protection Program Overview

The CARES Act allocated $350 billion for a new Small Business Administration Paycheck Protection Program (PPP). PPP provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

  • The program will provide cash-flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during this emergency. 
  • If employers maintain their payroll, the loans will be forgiven.

Am I eligible for PPP?

  • Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible.
  • Businesses with more than 500 employees are eligible in certain industries.
  • Small businesses are able to apply if you were harmed by COVID-19 between February 15, 2020 and June 30, 2020. 
  • This program is retroactive to February 15, 2020 in order to help bring workers who may have already been laid off back onto payrolls. 

How can I apply for PPP?

  • 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. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.
  • Loans are available through June 30, 2020.

Economic Injury Disaster Loans & Emergency Economic Injury Grants

The CARES Act creates a new SBA Economic Injury Emergency Grant Program to provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19.

  • The grant does not need to be repaid.
  • The grant can be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments. 

Am I eligible for an Emergency Economic Injury Grant?

  • Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible.
  • Eligibility has also been expanded to include:
    • Independent contractors
    • Cooperatives and employee owned businesses
    • Private non-profits (of any size)
    • Tribal small businesses
    • Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size.

How can I apply for an Emergency Economic Injury Grant?

  • To access the grant, you must first apply for an Economic Injury Disaster Loan and then request an advance. The advance will be made available to you within 3 days of when your application is received.
  • The advance does not need to be repaid (even if your application for the loan is denied).
  • Visit the Small Business Administration’s online EIDL application by clicking here. 

For more information on resources and loans available to small businesses, please visit the Small Business Administration’s COVID-19 guidance and loans resources page by clicking here.

This page was last updated on April 3, 2020.