The Paycheck Protection Program: What is it and what does it do for small businesses

Congress recently approved an additional $310 billion in funding for the Paycheck Protection Program as part of the CARES Act, the stimulus bill created in light of the economic downturn due to COVID-19. We’ve broken down the basics of the Paycheck Protection Program for small business owners, so you can understand how to navigate the program and receive funds as quickly as possible.

What is the Paycheck Protection Program?

The Paycheck Protection Program, otherwise known as the PPP, is the driving factor in the small business portion of the coronavirus stimulus package. The PPP is a forgivable loan that allows small businesses to continue paying their employees, mortgage interest, rent, and utilities, over eight weeks. It’s intended to help businesses keep their workforce employed during the COVID-19 pandemic. Businesses can receive up to $10 million, or 2.5 times their monthly payroll.

Who is eligible for PPP?

Small businesses—companies with fewer than 500 employees—can apply for PPP loans. Businesses must demonstrate that they have been negatively affected by the coronavirus. Qualified businesses include any business categorized under “accommodation or food service,” such as restaurants or hotels, with 500 or fewer employees, tribal businesses, independently owned franchises, self-employed workers, independent contractors, sole proprietors, or gig workers.

Where can you apply?

PPP loans are managed by certified Small Business Administration (SBA) lenders. You can apply for a PPP loan through approved SBA lenders or any federally insured depository institution, federally insured credit unions, and Farm Credit System institutions. Talk with your preferred lender to see if they’re participating. The SBA also has a lender search tool on their website. If you have already applied, check with your lender to verify your application status. The deadline to apply is June 30th, 2020, when the program ends, but you should apply as soon as possible. You should only apply through approved SBA lenders—many scammers are using this time of desperation as an opportunity to take advantage of people. Legitimate lenders will not ask for your Social Security number, bank account, or credit card numbers upfront.

As the SBA accepts loan applications, Georgia’s Own will process member requests in the same manner in the order they are received: please submit your contact information to In your email, please include the business name, type of industry and if you are business or retail type, number of employees, and contact information, such as an email address and/or telephone number.

How does PPP loan forgiveness work?

If you use the loan for anything other than payroll costs, mortgage interest, rent, and utilities throughout the loan, your loan will not be forgiven. Also, it’s only forgivable if you keep all your workers. So, if you previously laid off employees, you’ll need to rehire them. You can submit a request for loan forgiveness through your lender. The number of full-time employees and pay rates, as well as payments on the eligible mortgage, lease, and utilities will need to be verified. However, the loan carries a 1% interest rate that must be paid back within two years—payments can be deferred for six months.

For more information on loan resources for small businesses, visit And, to see how Georgia’s Own is helping members, small businesses, and the community during this time of need, visit our website.

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