The Paycheck Protection Program (PPP) prioritizes millions of Americans employed by small businesses by funneling $349 billion towards job retention and business operating expenses. It is a tremendous step in assuring many business owners the opportunity to stay afloat and maintain their workforce. We wanted to gather important information regarding the loan, the application and the implication for the long run. This is not a one and done process. Applying for the loan, accepting the loan and administering the loan requires a hard, accurate look at your financials, speaking with advisors and specialists.


The Paycheck Protection Program (PPP) is designed to provide incentives directly to small businesses to keep their staff on payroll by providing each small business a loan up to $10 million for essential operating expenses. The form is simple enough as any loan application, but some intricacies warrant an in-depth understanding of current state laws and regulations when making requests.


The purpose of the PPP is to help business owners retain employees, at their current base pay. If you were to keep all employees on the payroll, the entirety of the loan would be forgiven. If you still have to lay off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If the total payroll expenses on workers making less than $100,000 annually decrease by more than 25 percent, loan forgiveness will be reduced by the same amount. If a company has already laid off some employees, they can still be forgiven for the full amount of payroll cost to rehire employees by June 30, 2020.


If you are a small business, you are eligible. This includes eligible veterans organizations, non-profits,  tribal concerns, sole proprietorship, self-employed individuals, and independent contractors with 500 or fewer employees.


There are some exceptions for certain industries to have more than 500 employees if they meet the SBA’s size standards for those industries.

How to Apply

You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. It’s very likely the bank you currently work with is a participant. Thousands of banks make up the SBA’s lending programs. To apply you can simply call your bank or find SBA-approved lenders their online Lender Match tool. 

Deadline to Apply

According to the U.S. Small Business Administration, the deadline to apply is June 30, 2019.

Our team of financial experts is ready to jump in and support your accounting department through these uncertain times and in the years to come. We believe in providing timely, accurate financials to give you the tools to make the best decisions possible for your unique situations.