Paycheck Protection Loan Program (PPP)

 

The Paycheck Protection Program established by the CARES Act is implemented by the Small Business Administration with support from the Department of the Treasury. The effective period began March 27, 2020 through August 8, 2020. The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act) enacted on December 27, 2020, provided appropriations through May 31, 2021 or until funds are expended, for the PPP loan program. SBA reopened the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021. First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Additionally, The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations Business Entities (partnerships, corporations, LLC), Sole Proprietors, independent Contractors, 501(c)(3) nonprofit organizations, 501(c)(6)Organization, 501(C) 19Veterans organizations, and Tribal businesses described in the Small Business Act, maybe eligible if they also meet program size standards and certain limitations.

Active 59.073 Small Business Administration F - Guaranteed/Insured Loans Fiscal Year 2022 As of FY 2022, the SBA has forgiven more than 92 percent of PPP loans, resulting in a total of $754 billion paid out to $786 billion in loans. For more information about SBA accomplishments, access the SBA Congressional Budget Justification and Annual Performance Report: https://www.sba.gov/document/report-congressional-budget-justification-annual-performance-report Public Law 116-136
Public Law 116-139
Public Law 116-260 Additional information is available on SBA's website at www.sba.gov Not for Profit Entities and Small businesses that meet the size and eligibility standards www.treasury.gov Initial PPP requests required SBA Form 2483 Paycheck Protection Borrower Application Form to be submitted to a participating PPP lender. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov. Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible. Borrowers can apply for a First Draw PPP Loan until May 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP. All new First Draw PPP Loans will have the same terms regardless of lender or borrower. Borrowers can apply for a Second Draw PPP Loan until May 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP. All Second Draw PPP Loans will have the same terms regardless of lender or borrower. Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Applications for guarantees are submitted by the participating lender to SBA electronically. SBA provides approval notification to participating lender who provides a commitment letter and loan to the applicant. April 3, 2020 to June 30, 2020 January 11, 2021 to May 31, 2021 Initial loan distribution period June 30, 2020 or when funds are exhausted whichever is first. 2021 loan distribution period January 11, 2021 through June 30, 2021 or when funds are exhausted whichever is first for both the first draw loans and second draw loans. From 1 to 15 days. No Appeals Not applicable. Not applicable. In 2020 Loan proceeds may only be used for payroll costs; payments of interest on any business mortgage obligation, rent and/or utilities; interest on any other business debt obligations that were incurred before February 15, 2020; and/or to refinance SBA Economic Injury Disaster Loan (EIDL) loans made from January 31, 2020 through April 3, 2020. Payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. Other However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127). In 2021 First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Performance Reports: See www.sba.gov Not applicable. Annual independent financial audit. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. Initially in 2020, participating lenders were authorized to approve loans under the PPP program beginning April 3, 2020 through June 30, 2020, or until funds made available for this purpose are exhausted, whichever occurs first. In 2021, participating lenders are authorized to approve loans under the PPP program for the first draw loans beginning January 11, 2021 through May 31, 2021, or until funds made available for this purpose are exhausted, whichever occurs first. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from community financial institutions starting on January 13, 2021. The PPP will open to all participating lenders for Second Draw PPP Loans shortly thereafter. Method of awarding/releasing assistance: Lump. None/Not specified. Dianna L. Seaborn
409 3rd Street, SW 8th Floor,
Washington, DC 20416 USA
Dianna.Seaborn@sba.gov
Phone: (202) 205-3645 http://www.sba.gov 73-1154-0-1-376 (Guaranteed/Insured Loans) FY 22$0.00; FY 23 est $0.00; FY 24 est $0.00; FY 21$0.00; FY 20$523,323,782,981.00; FY 19$0.00; - Additional information is available on SBA's website at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses Fiscal Year 2020 This program provides small businesses with funds to pay up between 8 and 24 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Fiscal Year 2021 First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Additionally, Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Fiscal Year 2022 The CARES Act provided relief for small businesses and their employees adversely affected by the outbreak of COVID-19 through a cornerstone provision known as the Paycheck Protection Program (PPP), an emergency lending resource to provide loans to small businesses impacted by the pandemic. The goal of the PPP was to help small businesses cover near-term operating expenses and assist with financial support to help retain employees. Through the PPP, a forgivable loan program, small businesses, eligible non-profit organizations, veterans’ organizations, Tribal business concerns, sole proprietors, self-employed individuals, and independent contractors could apply and receive support to cover eligible payroll and non-payroll costs.