A Breakdown of the SBA Paycheck Protection Program

Published in Member Communities on April 02, 2020

The Paycheck Protection Program (PPP) is the third phase of the government’s $2.2 trillion government’s relief package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It was created to help small businesses cope with the COVID-19 outbreak. The PPP sets aside nearly $350B to be used by the Small Business Administration (SBA) to provide government backed and potentially forgivable loans to businesses throughout the country. Businesses can begin applying for these loans on Friday, April 3, 2020 through their lending institution of choice. The loans will be available to businesses through June 30, or until the money is gone, whichever comes first.

This portion of the act was designed to help small businesses cover certain operating expenses and keep their employees on the payroll while their business is disrupted due to the pandemic. Some key features of the program include:

  • Available to small businesses, nonprofits, sole proprietorships, Tribal businesses, veterans’ organizations, and independent contractors, with 500 or fewer employees
  • Maximum loan is equal to 2.5 times the employer’s average monthly payroll
  • Capped at a max of $10M per business
  • Loans can be used to cover payroll (wages, salaries, retirement contributions, and health benefits including medical leave)
  • Loans can also be used to cover things like rent, utilities, and mortgage interest
  • No collateral or personal guarantee required
  • No fees/2-year maturity, and 0.5% interest rate
  • Loans are fully insured/backed by the federal government
  • Loans are forgivable if used properly

If you want to get started on your application, download the application form.

Click here for additional Q&A, and click here for a webinar recording that divers deeper into this program and its various features and benefits.

From Our Experts

Trends in Wages and Costs Across Healthcare: Overview and Future Trends thumbnail Trends in Wages and Costs Across Healthcare: Overview and Future Trends In the ever-evolving landscape of healthcare, understanding the trends in wages and costs is crucial for both professionals and organizations. Unlocking a New Revenue Stream: Understanding Lymphedema Compression thumbnail Unlocking a New Revenue Stream: Understanding Lymphedema Compression Ronda Buhrmester, Senior Director of Payer Relations and Reimbursement at VGM & Associates, and Noel Neil, Chief Compliance Officer at ACU-Serve, unpack the nuances of lymphedema compression therapy. ATP Gateway Allows Repair Techs to Explore New Career thumbnail ATP Gateway Allows Repair Techs to Explore New Career U.S. Rehab added a new ATP Gateway program to the back end of its recent live tech training events in an effort to increase the funnel of ATPs entering the market by leveraging the repair tech workforce. Heartland Conference 2025 Recap: Where Innovation Meets Intention thumbnail Heartland Conference 2025 Recap: Where Innovation Meets Intention Heartland 2025 brought together a vibrant community of professionals who are not only navigating change but actively shaping the future of care. Heartland Conference 2025 Recap: Where Innovation Meets Intention thumbnail Heartland Conference 2025 Recap: Where Innovation Meets Intention Heartland 2025 brought together a vibrant community of professionals who are not only navigating change but actively shaping the future of care. The Cost of Doing Business in the Sleep Apnea Space: A Respiratory Therapist's Perspective on HME Challenges thumbnail The Cost of Doing Business in the Sleep Apnea Space: A Respiratory Therapist's Perspective on HME Challenges Discover what it costs to support a patient in the sleep apnea space and how finding a partner with a comprehensive program can help mitigate these challenges. U.S. Rehab, Nymbl ‘Make Life So Much Easier' For Therapists thumbnail U.S. Rehab, Nymbl ‘Make Life So Much Easier' For Therapists U.S. Rehab and Nymbl Systems have collaborated on a new software feature that allows ATPs and therapists to communicate more efficiently about wheelchair evaluations. The Cost of Doing Business in the Sleep Apnea Space: A Respiratory Therapist's Perspective on HME Challenges thumbnail The Cost of Doing Business in the Sleep Apnea Space: A Respiratory Therapist's Perspective on HME Challenges Discover what it costs to support a patient in the sleep apnea space and how finding a partner with a comprehensive program can help mitigate these challenges.