SBA COVID-19 Economic Disaster Loans & Programs

Notice: The Small Business Administration (SBA) continues to refine their online resources for COVID-19 Relief Options. This page has been updated as of Friday, July 22nd 2022, to bring you the most current and accurate information about these federal economic disaster assistance programs and their requirements. It is provided to our community as a local resource of consolidated information available elsewhere on federal government websites and we will strive to keep it as up-to-date as possible pending any additional changes by the federal government.

Paycheck Protection Program

The Paycheck Protection Program (PPP), a loan designed to provide a direct incentive for small businesses to keep their workers on payroll, ended on May 31st, 2021. Borrowers may be eligible PPP loan forgiveness.

SBA also offers additional COVID-19 relief.

First Draw PPP Loans

If you have not received a PPP loan before, First Draw PPP Loans may be available to you.

Loan Details

PPP 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 are 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

The following entities affected by Coronavirus (COVID-19) may be eligible:

• 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

All new First Draw PPP Loans will have the same terms regardless of lender or borrower.

If you wish to begin preparing your application, you can download the following PPP borrower application form to see the information that will be requested from you when you apply with a lender:

PPP First Draw Borrower Application Form (effective 2021-03-18)
PPP First Draw Borrower Application Form for Schedule C Filers Using Gross Income (effective 2021-03-18)

Supplemental Materials

FAQ for Lenders and Borrowers (effective 2022-07-08)
How to Calculate First Draw PPP Loan Amounts (effective 2021-03-12)
Borrower’s Disclosure of Certain Controlling Interests (effective 2021-07-30)
FAQ for Faith-Based Organizations Participating in the PPP and Economic Injury Disaster Loan Program (effective 2020-04-03)
PPP Myth vs. Fact (effective 2021-01-08)
Cross-program eligibility on SBA coronavirus relief options

Affiliation Rules

• Paycheck Protection Program Affiliation Rules (effective 2020-04-03)n
• Interim Final Rule for Applicable Affiliation Rules (effective 2020-04-15)

Reapplying and Loan Increases

Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may:

• Reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or
• Under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible

Existing Borrowers

Lenders typically decide when to submit individual PPP loan applications to SBA. Therefore, any questions or concerns regarding individual PPP loan applications must be directed to your lender.

For borrowers who have had their application submitted to SBA by their lender, you can create an account in the SBA Capital Access Financial System (or CAFS) to monitor their loan status. Get account enrollment instructions.

If you are unsure about your PPP loan status, or if your PPP loan application has been flagged due to data anomalies, please contact your lender to get more information.