Apply Now! SBA is Still Funding Paycheck Protection Program Loans.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Loan Overview

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%. Payments are deferred 6 months, but accrue interest during deferred period. 

Maximum loan amount is $10 million.

Who Can Apply

The following entities affected by Coronavirus (COVID-19) may be eligible:

• 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

Lenders participating in the Paycheck Protection Program by State

How to Calculate Loan Amounts

PPP Frequently Asked Questions

• Approved lending institutions have delegated authority for the PPP application process. Contact your lender for status information about your application.
• SBA District Offices are not involved in the application process and cannot provide status information on your PPP loan application.
• SBA and the Treasury are in the process of reviewing PPP questions from lenders and borrowers. Responses are being posted regularly on the SBA's PPP page and the Treasury.gov/CARES site in category specific documents, such as Applicable Affiliation Rules, and FAQs for Faith-Based Organizations or in the Frequently Asked Questions document.
• SBA District Offices are not authorized to provide responses to situation specific questions that have not already been posted to the FAQ document or other documents on the SBA's PPP page or Treasury.gov/CARES site.
• We encourage you to:
• Follow the rules as they are currently posted
• Document all transactions as they pertain to your use of the PPP funds you have received
• Review the information posted on the sites linked above regularly and
• Adjust your processes if needed as new information becomes available.

Additional Resources for Small Businesses

The SBA is committed to helping small businesses recover from the economic impact of COVID-19. Additional assistance includes:

• Funding: SBA 7(a), 504 and microloans, on which the SBA is offering Debt Relief; or, SBA Express Bridge Loans.

• Small Business Development Centers - The SBDC Network provides one-on-one consulting and training at no cost. Services include credit repair assistance. 

  •COVID-19 webinars and guides: https://www.norcalsbdc.org/covid-19
  •Obtain assistance at https://nc.ecenterdirect.com/signup;
  •loans@asksbdc.com; 1-833-ask-SBDC (7232); 
  •Email espanol@asksbdc.com para asistencia en español.

   

  Women’s Business Centers – WBCs provide free business start-up and development assistance, with a commitment to meeting the unique needs of women entrepreneurs and women in business.

  •California Capital Financial Development Corporation (Greater Sacramento region):  womensbusinesscenter@cacapital.org; 916-442-1729
  •Women’s Business Center at Jefferson Economic Development Institute (JEDI) (Siskiyou, Shasta, Trinity and Humboldt counties) info@e-jedi.org; 888-926-6670

• Tax Relief: IRS information about tax relief for businesses.
• California COVID-19 guidance and resources: Emergency resources for California businesses.

Stay updated

Visit sba.gov/coronavirus for updates on the loan programs, guidance for businesses and employers, and other SBA resources. Additional guidance is also available at: https://treasury.gov/CARES

Follow @SBA_Sacramento on Twitter.

Subscribe to get email alerts at SBA.gov/updates.

E-mail questions to Sancramento_DO@sba.gov.