Paycheck Protection Program Loans
You may not need to repay
Small businesses and non-profit organizations may be eligible for federally guaranteed loans to cover payroll expenses as well as certain other business expenses, such as interest on mortgage, rent, and utilities. The Paycheck Protection Program was created under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020. For the first round of loans, eligible businesses were defined as those with fewer than 500 employees, with some exceptions. Under a new law, to be eligible for a second draw, a business must have no more than 300 employees and demonstrate at least a 25 percent reduction in gross revenues between comparable quarters in 2019 and 2020.
Borrowers may be eligible for loan forgiveness if funds are used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities. If you do not apply for forgiveness, you will have to repay the loan.
Who is eligible?
Small businesses (Generally those with under 500 employees for a first draw; under the new law, businesses with less than 300 employees may be eligible for a second draw.)
Nonprofit organizations, veterans organizations, tribal businesses, self-employed individuals, and independent contractors may also be eligible
How to apply:
Contact your bank or SBA-approved lender. Get additional assistance from your local Small Business Development Center.