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

O&P Legislation: A Bill Where All Parties Benefit thumbnail O&P Legislation: A Bill Where All Parties Benefit Recent fraud takedown will fuel support for O&P legislation, stakeholders say. Live at Home Sees Spike in Interest in Home Access Market thumbnail Live at Home Sees Spike in Interest in Home Access Market VGM Live at Home's Cindi Petito is noticing increased interest in the home accessibility market in the wake of CMS's decision to resurrect competitive bidding. Meet The 2025 O&P Woman of the Year, Fanny Schultea thumbnail Meet The 2025 O&P Woman of the Year, Fanny Schultea OPGA is proud to announce that Fanny Schultea, MS, MSEd, CPO, LP, FAAOP, Executive Director of The Orthotics and Prosthetics Foundation for Education and Research, has been selected as the 2025 O&P Woman of the Year. Setting Up Your HME for Enrollment Success thumbnail Setting Up Your HME for Enrollment Success Unlock enrollment success for your HME business with tips on provider enrollment, CMS compliance, and avoiding pitfalls. Stay prepared and compliant. September Shift: From Busy to Better—Owning the Home in HME thumbnail September Shift: From Busy to Better—Owning the Home in HME Discover how HME providers can shift from busy to better this September. Learn strategies for enhancing patient experiences, improving operational efficiency, and navigating payer complexities. Join us in building lasting customer relationships and fostering community engagement for a successful Q4 and beyond. The Role of DMEPOS in Value-Based Healthcare thumbnail The Role of DMEPOS in Value-Based Healthcare Explore how DMEPOS providers contribute to value-based care by enhancing patient outcomes, reducing costs, and promoting healthcare transformation. VGM Expands Expertise with Industry Consultants thumbnail VGM Expands Expertise with Industry Consultants VGM & Associates is excited to announce the expansion of its VGM Professional Services team with the addition of Steve Baker, Brian Bersano, & Tonya Williams. A Data-Driven Approach to Unlocking Growth in the HME Industry thumbnail A Data-Driven Approach to Unlocking Growth in the HME Industry Discover how to enhance your HME business growth with data-driven strategies with actionable tools and resources.