The Paycheck Protection Program (PPP) is a business loan program established by the US Federal government and implemented by the US Small Business Administration in order to help businesses adversely affected by the COVID-19 pandemic. To qualify for a PPP loan, applicants must meet certain criteria which we will detail below.
PPP loans can be used for a variety of purposes including: payroll (which can include salary, tips, vacation leave, sick leave, holiday pay, furlough pay, bonuses, severance pay, and other compensation paid to employees), rent, utilities, and interest.
PPP loans do not require collateral on the part of the business and have a set interest rate of 1%. Loans are potentially 100% forgivable depending on what the loan was spent on, to what extent the business was able to keep its employees as well as their hours and wages.