ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Covid-19 Emergency Paycheck Protection Program for Businesses

Updated on April 4, 2020
John Iovine profile image

Science writer and experimenter. Conventionally published in science, technology, computers, personal development, health, & fitness.


This is the program as I understand it to be. Check the references provided for updated information and please consult with your legal, financial and tax advisors regarding this program, as the program specifics may change.


The Senate and White House officals agreed, on March 25, to a $2 Trillion emergency relief package to mitigate the economic disaster created by the coronavirus Covid-19 outbreak. President Donald Trump signed into law on March 27.

This bill allocates money to be paid directly to American taxpayers, for healthcare, and to provide economic releif to small business owers that are suffering an economic downturn because of the coronavirus emergency. Funding for small businesses is through the Payroll Protection Program (PPP) are funded through the SBA via local banks and lenders.

Aside from the PPP, there is an additional 10 billion dollars available through the SBA’s Economic Injury Disaster Loan Program (EIDL) which includes emergency grants for small businesses.


Currently there are 1800 banks and lenders expected to participate in the Payroll Protection Program (PPP) across the United States. If your bank is not participating in the PPP you can find a lender here.

The Payroll Protection Program

The Payroll Protection Program (PPP) is an SBA initiative to provide relief to small business owners hurt by the coronavirus Covid-19 emergency. The purpose of the PPP is to keep their employees on the business payroll. The SBA program has 376 billion dollars in funding. Essentially, this is a business loan that has the potential to be either partially or fully “forgivable”.

Loan Forgiveness

For the loan to be forgivable, partially or fully, the money must be used for qualifying expenses by the business. Qualifying expenses include payroll, rent, mortgage, and utilities for the following 8 weeks after the date the loan has been made. Supporting documentation must be provided.

To qualify for this PPP loan, a business must have 500 or less employees. Businesses also include individuals that are sole proprietors, self-employed and independent contractors, as well as non-profit and veterans organizations.

The SBA may change the maximum number of employees if they meet SBA’s size standard for some industries

The loan has an interest rate of 1% and a maturity of 2 years. The loan has 6 month payment deferment. No collateral or personal guarantees are required for the loan. You do, however, need to confirm that it is because of the Covid-19 emergency, that this money is needed to continue business operations.

Apply for the PPP Loan

To download the application for the PPP loan go here. Neither the government or the lending institution will charge a fee for the loan. Lenders are allowed to start taking loan applications for small businesses and sole proprietorships beginning April 3, 2020. Independent contractors and self-employed individuals can apply for a loan starting April 10, 2020. Applications will be accepted until June 30, 2020.

I would recommend filing your application as soon as possible. When the SBA 376 billion dollar funding is depleted there will be no money left to make additional loans.

Generally, the maximum amount of the loan will be 2.5X your monthly payroll cost, up to 10 million dollars. The average monthly payroll ought to be calculated using the prior year’s payroll. Payroll cost includes salary, wages, commissions, health care benefits and retirement benefits.

The SBA has a new 24/7 phone help line: 1–800–659–2955

Applying For Loan Forgiveness

The loan will be deferred for 6 months before any payment is due. This allows adequate time to submit a request to the lender that is servicing the loan for forgiveness. You will need to supply documentation that will verify the number of employees and their pay rates as well as payments on other qualifying expenses.

The lender must make a decision on the forgiveness within 60 days.

EIDL $10,000 Grant

The Economic Injury Diseaster Loan Program and Advance (EIDL), is an existing program that has been given $10 billion dollars from the stimulus program. The program offers a $10,000 grant, or emerency advance, that does not have to be paid back.

Businesses and non-profits can apply for the EIDL directly. You can apply for the EIDL grant here.

Stay Calm and Keep Selling


Paycheck Protection Program (PPP)

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

The Interim Final Rule

© 2020 John Iovine


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)