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The Paycheck Protection Program (PPP) Application Process Reopens on April 27 at 10:30AM

The Paycheck Protection Program (PPP) application process reopens on April 27 at 10:30AM. This program, created by the CARES Act, provides loans to small businesses, sole proprietors, independent contractors, and self-employed individuals. In many cases, the loans can be up to 100% forgivable. The PPP was active from April 3 through April 16, when it ran out through its initial earmark of $349 billion. Congress has since allotted another $310 billion in funding which is expected to be exhausted quickly. Contact your financial advisor to see whether this program makes sense for you and, if it does, apply as soon as possible.


PPP Application Process Summary


The PPP is administered by SBA approved lenders (click here to access a list of institutions that provided loans to MA companies in the first PPP round, and all entities from the SBA’s approved lenders list, categorized by asset level) and the application process varies by lender. Some banks will only extend loans to applicants who have existing relationships with them. Borrowers will need to provide documentation of their average monthly payroll for the year prior to receiving the loan, though documentation requirements may also differ by lender.


PPP Loan Forgiveness Summary


Applicants are eligible to access loans in the lesser amount of 2.5x the average monthly payroll expenses they had for the prior year or $10 million. In many cases, up to 100% of the loan can be forgiven.


  • Applicants with Employees - the full loan amount will be forgiven if at least 75% of the total loan goes towards payroll costs and the same number of employees are maintained on staff. The remaining up-to 25% can be used for other qualifying expenses such as rent, mortgage interest, and utilities. 

  • Applicants without Employees – up to 8x average weekly net profits as indicated on line 31 of the 2019 IRS Form 1040 Schedule C can be forgiven. This form must be completed, even if the applicant has not filed their 2019 taxes.

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