Update: What to Know About the Paycheck Protection Program

Update 3/30/21: On Tuesday, March 30, President Biden signed into law a 2 month extension for the current round of Paycheck Protection Program funding. In order to receive funds through the program, eligible businesses will need to apply by May 31st. 

Update, 1/14/21: The Paycheck Protection Program began a phased reopening for loan applications on January 11; the program will be open to all participating lenders and eligible borrowers, including both first and second draw applicants, on January 19. First draw applicants can access the loan application here. There is a separate application form for eligible businesses seeking a second draw loan. Need to find an SBA-approved lender? We can help.

Update, 8/7/20: As of August 8, the SBA will no longer be accepting applications for Paycheck Protection Program loans. Learn about other small business financing options.

Update 8/5/2020: On August 4^th, the U.S. Small Business Association published new Paycheck Protection Program loan forgiveness FAQs. Our teams are working to review this new guidance and we will continue to keep you updated on how this may impact the loan forgiveness process, what is required as part of your forgiveness application, and how to use our in-app tools to support your application.

Update 7/4/2020: On July 4, 2020, President Trump signed into law an extension of the Paycheck Protection Program (PPP) loan application deadline to August 8.  Looking to apply for a loan? Find an SBA-approved lender. If you’re not sure if PPP is the right approach for your small business, start your research with these resources: maximizing PPP loan forgiveness and explore other small business financing options.

Update 7/2/2020: The Paycheck Protection Program is currently not accepting applications for loans, as the deadline to have a loan approved. As of July 1, both the U.S. Senate and House of Representatives have passed an extension of the application deadline to August 8. This now goes for President Trump's signature to become law. If you are planning to apply for a loan should the program reopen to new applications, get a head start: find an SBA-approved lender. While we await further news, you can learn more about maximizing PPP loan forgiveness and explore other small business financing options.

Update 6/30: As of June 30, 2020 applications for loans through the Paycheck Protection Program are closed. Looking for funding? Learn more about small business funding options that are still available.

Update, 6/22: SurePayroll customer? If you’re planning to apply for PPP loan forgiveness, you can now access an interactive forgiveness estimator and worksheet directly from your dashboard. Log in and click on the yellow banner to get started.

Update, 6/9: The Paycheck Protection Program (PPP) Flexibility Act, which was signed into law June 5, 2020, made some significant changes to the PPP loan and loan forgiveness process. Read this blog post to learn more about the Flexibility Act. For additional PPP Loan Forgiveness support, check out the FAQs and forgiveness estimator on our Maximizing Loan Forgiveness hub.

Update, 6/5/20: On Friday, June 5 President Trump signed the Paycheck Protection Program (PPP) Flexibility Act of 2020 into law. Our online PPP Loan Forgiveness Estimator has been updated to reflect the new guidance in the law. We continue to actively update our existing PPP resources on this site as additional guidance is released.

Update, 6/3/20: On Wednesday, June 3 the U.S. Senate passed the Paycheck Protection Program (PPP) Flexibility Act of 2020, modifying certain provisions related to the forgiveness of loans under the Paycheck Protection Program. The bill, having passed the legislative branch, now heads to the White House, where President Trump is expected to sign it into law. We are closely monitoring any legislative changes and will work through new guidance to provide up-to-date tools, reporting, and resources to help you maximize your loan forgiveness. Visit our Maximizing PPP Loan Forgiveness hub for the latest.

Update, 5/23/20: Late Friday, May 22 the U.S. Treasury and the Small Business Administration issued two Interim Final Rules: the highly anticipated Interim Final Rule on Loan Forgiveness, and an Interim Final Rule on Loan Review Procedures and Related Borrower Responsibilities. We are working through the new guidance to finalize our reporting, loan forgiveness estimations, and will produce additional content and resources to help you as you seek loan forgiveness. For additional information on maximizing loan forgiveness, please visit our Paycheck Protection Program Loan Forgiveness hub.

Update, 5/18/20: Late Friday, May 15, 2020, the U.S. Treasury and the Small Business Administration released the application for Paycheck Protection Program loan forgiveness application. We are working through the information available to update our loan forgiveness estimator. As a reminder, restoring employee full time equivalent levels and salary/hourly wage levels by June 30, 2020 can help maximize your opportunity for loan forgiveness. Visit our Maximizing Loan Forgiveness hub for the latest updates on PPP forgiveness.

Update, 4/24/20: President Trump signed into law an additional allocation of funds for the Paycheck Protection Program (PPP) on 4/24/20. The law authorizes an additional $310 billion to the Paycheck Protection Program, $50 billion to the Economic Injury Disaster Loan (EIDL) program and $10 billion for EIDL grants. 

Notably, $60 billion of the allocated funds have been set aside for community lenders, including state and federal credit unions.

To help you move quickly to access these funds, we’ve put together a quick start guide. Link to: https://www.surepayroll.com/resources/blog/ppp-quick-start

Update, 4/16/2020: The SBA announced on April 16, 2020 that the initial $349 billion authorization for loans under the Paycheck Protection Program has been exhausted. Here’s what you need to know.

Update, 4/15/2020: Late on April 14^th, the Treasury and SBA issued additional guidance on eligibility criteria and requirements for self-employed applicants, impacting partnerships and self-employed 1040 Schedule C filers. The full guidance can be found here, and key points include:  

• A partnership is only eligible for one loan under the Paycheck Protection Program, not two separate ones.
• Self-employed individuals with no employees should use 2019 IRS Form 1040 Schedule C to assist in calculating their maximum loan amount.
• Self-employed individuals with employees should also use 2019 IRS Form 1040 Schedule C, and payroll processor records containing similar information to Form 941, along with evidence of any retirement and health insurance contributions, if applicable.

Update, 4/10/2020: We know that navigating the various relief options can be a challenge. Jackson Lewis has published a flow chart to help businesses understand their eligibility and opportunity for forgiveness under the Paycheck Protection Program.

Update: We’ve created a specialized report that is currently available for SurePayroll users to help make applying for a Paycheck Protection Program (PPP) loan simpler. Log into your account to get your report today! Note that household employers are not eligible for a PPP loan.

Both the Families First Coronavirus Response Act and the CARES Act include economic relief provisions for small businesses. The legislation is complicated, and certain relief options cannot be used in combination. To help you navigate and find the relief that is right for your business, we've put together a quick guide.

The PPP prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

Small businesses and organizations, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program standards.

The loan application is available here. But don’t apply yet—keep reading for timelines, eligibility requirements, and other details of the program.

When to Apply

Starting April 3, 2020, small businesses and sole proprietorships can apply for loans under the Paycheck Protection Program. Starting April 10, 2020, independent contractors and self-employed individuals can apply.

Once the application process opens, we encourage you to move quickly, as there is a funding cap under the legislation and loan applications will be processed as received.

There are eligibility, use, and loan forgiveness requirements. To learn more, we have provided FAQs by topic, courtesy of Jackson Lewis.

Paycheck Protection Program Eligibility

What Can the Paycheck Protection Loan Be Used For?

Paycheck Protection Loan Forgiveness

Paycheck Protection Loan Application Process

How does a business apply for a loan under the Paycheck Protection Program?

The loan application is available here.

Starting April 3, 2020, small businesses and sole proprietorships can apply for loans under the Paycheck Protection Program. Starting April 10, 2020, independent contractors and self-employed individuals can apply.

Once the application process opens, we encourage you to move quickly, as there is a funding cap under the legislation and loan applications will be processed as received.

Borrowers who have outstanding SBA loans may also want to contact their existing lenders to inquire about applying for loans under the program.

Is there any penalty to apply for the PP Loan if you later determined to be ineligible?

No, there is no penalty for applying if the business is later determined by the SBA to be ineligible to apply. Keep in mind, the applicant is required to make a good faith certification that, among other things, it is necessary to obtain the loan to support ongoing operations of the business and the funds will be used to retain workers and maintain payroll, or make mortgage, lease or utility payments.