Payment Protection Program
The Paycheck Protection Program authorizes $349 billion in no-fee small business loans. It is available for Nonprofit and for-profit businesses with fewer than 500 employees1, including the self-employed and those that receive Medicaid funding.
- Qualified payroll costs
- Rent, utilities
- Interest on mortgage and other debt obligations
Businesses can borrow 2.5 times their monthly payroll expenses, up to $10 million. The initial loan rate has been set at 0.5 percent, but the CARES Act caps the interest rate at 4 percent, so it is possible the interest rate could increase.
The program includes loan forgiveness covering costs for the first eight weeks of the loan for companies able to keep employees on payroll or continue paying bills throughout the coronavirus crisis.
Businesses can start the application process and learn more from their bank or an approved lending institution. Loans are available until December 31, 2020.