Paycheck Protection Program - SBA Loan


The program provides federally guaranteed loans to small businesses who maintain their payroll during the crisis. These loans might be forgiven if the employers maintain their payrolls during the emergency period. The Small Business Administration will start working with local lenders offering these types of loans.

Who is Eligible?

  • Small for profit businesses with less than 500 employees (full time and part time employees counted)

  • 501(c)(3) Non profit organizations with less than 500 employees (full time and part time employees counted)

  • Self employed individuals engaged regularly in a trade or business.

  • Small businesses that have not taken SBA Interruption Loans or Payckek Protection Program Loans.

How much can one business borrow?

A small business can borrow up to 2.5 times the average monthly payroll cost not to exceed $10 million.


Monthly Payroll Cost = Included Payroll Cost Excluded Payroll Cost


Included Payroll Cost:

  • Salaries

  • Hourly Wages

  • Commissions

  • Cash Tips

  • PTO Pay

  • Health Insurance Premiums

  • Payment of retirement benefits

  • Net earnings from self employment


Excluded Payroll Cost:

  • Compensation in excess of 100K

  • Payroll taxes and income taxes

  • Compensation paid to employees outside of the US

  • Qualified sick or family leave used for the payroll tax credit

Loan forgiveness

Small businesses are eligible for loan forgiveness if they spend on the following items during the 8 week period beginning on the origination date of the loan:

  • Payroll Costs

  • Interest on mortgage loans related to business.

  • Rent

  • Utilities

The loan forgiveness amount will be reduced if there is a reduction in number of employees or a greater than 25% reduction in payroll cost.

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