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What is the Paycheck Protection Program?

Updated: Mar 11

The SBA is currently accepting First Draw PPP loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets, which includes approximately 5,000 institutions, including community banks, credit unions, and farm credit institutions. Lender Match can help you find a participating lender. The program will open to all lenders on January 19, 2021.


Loan details The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP Loans can be used to help fund payroll costs, including benefits, and may 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.

SBA will forgive loans if all employee retention criteria is met, and the funds are used for eligible expenses.


▪ PPP loans have an interest rate of 1%.

▪ Loans issued prior to June 5, 2020 have a maturity of two years. Loans issued after June 5, 2020 have a maturity of five years.

▪ Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).

▪ No collateral or personal guarantees are required.

▪ Neither the government nor lenders will charge small businesses any fees.


Who may qualify

* Sole proprietors, independent contractors, and self-employed persons * Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard) * Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of 500 employees, or that meets the SBA industry size standard if more than 500. * Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location


How and when to apply You can apply for a First Draw PPP Loan until March 31, 2021. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from participating community financial institutions (CFIs). All new First Draw PPP Loans will have the same terms regardless of lender or borrower.


To be matched with a participating PPP lender, visit SBA Lender Match.

To begin preparing your application, you can download the PPP borrower application form here.

For information on the Second Draw Paycheck Protection Program, click here.


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