Understanding the Paycheck Protection Program (PPP)
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses (under 500 employees) to keep their workers on the payroll. The loan funds can be applied to the following expenses: payroll costs, interest on mortgages, rent, and utilities. All loan terms will be the same and the United States Small Business Association (SBA) will forgive the entire loan if all employees are kept on the payroll for eight weeks and at least 75% of the money is used for payroll, rent, mortgage interest, or utilities. Agricultural producers are eligible to participate in the program and should reach out to their bankers and/or agricultural lenders to apply immediately. While SBA still needs to confirm some administrative details, loans will be provided on a first-come, first-served basis and producers can get started on the application now.
- For a top-line overview of the PPP program CLICK HERE
- Information for prospective borrowers can be found HERE
- The application for borrowers can be found HERE
The best POC for questions on the Paycheck Protection Program is the Lender Relations Specialist in your local SBA Field Office. The local SBA Field Office may be found at https://www.sba.gov/tools/local-assistance/districtoffices.