CARES Act Payroll Protection Program (PPP)

Payroll Protection Program FAQ's

What is the Payroll Protection Program (PPP)?

The PPP provides 100% federally guaranteed loans to small businesses through the Small Business Administration. It aims to assist small business owners facing challenges through COVID-19.

Am I eligible to apply?

To be eligible for PPP loans, you should be a small business, sole proprietorship, nonprofit, veterans organization, or tribal organization with no more than 500 employees. You must also meet the SBA’s affiliation requirements.

Do I meet affiliation requirements?

Affiliation means that your organization is controlled by another party. This will disqualify you from being able to receive PPP loans. You have affiliation if:

  • Another entity is a majority shareholder; or
  • Another entity is a minority shareholder with enough influence to control business operations through bylaws, stockholder agreements, or charter clauses

How do I apply?

If you are eligible, you can apply anytime before June 30, 2020 through the SBA’s websites.

How much in loans will I be able to receive?

You are eligible for 2.5x your average monthly payroll costs from the past 12 months. However, you may not receive anymore than $10 million, and the annual salary for any employee must not exceed $100,000.

What are the terms of the loan?

While the loan amounts will be different for each company, the loan terms are set at a 1% fixed interest rate over a 2 year term.

Will I be able to receive loan forgiveness? How?

You are eligible for loan forgiveness if borrowers can:

  • Keep all employees on payroll during the crisis or rehire all before June 30,2020; and
  • At least 75% of loan proceeds go towards payroll costs

To do this, you must submit a written forgiveness request from your lender no sooner than eight weeks after you receive the loan.

I have more questions.

Email us for free CARES Act guidance at

Published April 21st, 2020

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