What is the Paycheck Protection Program

The Paycheck Protection Program (PPP) is a small business loan program that is created to help small businesses get through COVID-19 while retaining their employees. The program includes no fees. The loan is more like a grant as it can be 100% forgivable. To have the full loan amount forgiven, funds must be used for payroll, mortgage interest, rent, utilities. Since the primary focus of PPP is employee retention, 75% of the amount forgiven must have been utilized for payroll. If employees have been fired, you must quickly rehire the employees in order to qualify for forgiveness. The loan forgiveness will be reduced based on decreases in employees or salaries. These loans can be deferred for up to six months and require no collateral. 

Who can Apply

According to the Small Business Association:

• Small businesses that meet 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

Where to Apply

Most business loan providers will be able to assist you in applying for the Paycheck Protection Program. Lenders are processing loan applications now until June 30th, 2020. There are limited funds available for the PPP — do not delay in applying for the loan. Congress is working on increasing federal funding for the program.

The document below shows the list of Paycheck Protection Program Lenders in Minnesota. If your preferred lender is not on the list, give them a call to confirm whether or not they can offer PPP loans. New lenders are being added as providers on a frequent basis.

More information

• Your business loan lender will be able to provide the best information regarding the program and if you can qualify. Talk to your lender today.
• Paycheck Protection Program FAQ 

If you have any policy questions regarding state and federal action on COVID-19, contact us and we will do our best to provide guidance.