Paycheck Protection Program

Government stimulus dollars and various tax credit programs are now available under the CARES Act. These programs are designed to help small businesses and sole proprietors manage their expenses and keep workers employed amid the COVID-19 pandemic.


  • Emergency lending vehicle – incentive to retain employees
  • Administered by the SBA
  • Covers operating expenses during the worst of the crisis
  • Employers with less 500 employees
  • Up to 250% of the average monthly payroll expenses or $10 mm – whichever is less
  • Loan forgiveness – dollars spent on covered expenses during the first eight weeks post-loan-origination
  • Employers must:
    • Maintain a pre-crisis level of FTEs
    • Or face a reduction of loan forgiveness
    • May rehire through June 30 to get to the necessary level for full forgiveness
  • Union organizing “neutrality” requirement
  • Not the same as Economic Injury Disaster Loans (EIDLs)

April 3, 2020

Loan availability for small
businesses and sole
dates through
existing SBA lenders and other
federally-insured banks and credit

April 10, 2020

Loans available for independent
contractors and self-employed

SBA to issue regulations
implementing the paycheck
protection loan program – will likely be sooner.

April 26, 2020

SBA to issue specific guidance on
the loan payment deferment relief
and the loan forgiveness provisions
– may be released sooner

For more information:

Small Business Administration: Guidance and Loan Resources
Treasury Department CARES Act Website (For More on Loan Programs)
IRS Coronavirus Website (For Paid Leave Tax Credits)
Department of Labor Coronavirus Website (Workplace Safety; Wage, Hours, and
Leave; Unemployment Insurance; etc.)

Source: HUB International