Part of CARES Act of 2020

Paycheck Protection Program Overview

The CARES Act focuses on providing economic relief with a newly-created tool: the Paycheck Protection Program (“PPP”). This program expands the existing Small Business Administration (“SBA”) loan program and allows the SBA to provide additional loans and loan forgiveness to businesses and certain individuals as a result of the COVID-19 pandemic. PPP loans may be obtained by contacting an SBA-approved lender. The SBA will provide loans through the PPP during the covered period, from  February 15, 2020 to June 30, 2020.

Does My Business Qualify?

The PPP expands existing SBA coverage. The following types of entities and individuals can qualify for loans through the PPP:

Small Businesses & Certain Nonprofit Organizations

Business concerns, 501(c)(3) organizations, veteran’s organizations, and tribal business concerns that either employ 500 or fewer employees or employ not more than the size standard established by the SBA for their industry are eligible for the PPP.

Entrepreneurs & Independent Contractors

The PPP also extends coverage to eligible sole proprietors, independent contractors, and self-employed individuals. In order to receive a loan through the PPP, these individuals must furnish certain documentation, such as Form 1099-MISC and profit and loss statements to establish eligibility.

Food & Accommodation Sector

A business that has more than one physical location, but is designated under NAICS code 72, the Food and Accommodation Sector, is eligible for a PPP loan as long as each location does not employ more than 500 employees.