How to Apply for a PPP Loan
What is the Paycheck Protection Program (PPP)
The PPP was established through the CARES Act in order to help small businesses affected by COVID-19. The PPP is a loan designed for small businesses to guarantee their employees eight weeks of payroll and can also be used to pay rent, mortgage interest, and utilities to qualify for loan forgiveness (at least 75% of the forgiven amount must have been used for payroll). Otherwise, the loan will mature in two years and has a 1% interest rate. Loan payments are deferred for six months, and no collateral is necessary.
PPP Eligibility
According to the U.S. Small Business Administration (SBA), the following entities are eligible for a PPP loan:
Any small business concern that meets SBA’s size standards (either the industry based sized 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
Sole proprietors, independent contractors, and self-employed persons
How to Apply
Download and complete the PPP borrower application form. There are multiple websites that can help you find a lender:
Alternatively, you can look through a list of lenders participating in the PPP by state (updated as of May 13).
Other Resources from the SBA
SBA Express Bridge Loans: small businesses that have a relationship with an SBA Express Lender can access up to $25,000
SBA Debt Relief: 6 months of relief for principal, interest, and fees of new and current 7(a), 504, and microloan
As a social impact initiative, Rem and Company also offers free consulting services and resources to small businesses and nonprofits impacted by COVID-19. Our pro-bono consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies, and facilitate execution. If you are a small business or nonprofit in need of assistance, learn more about how we can help.