Here is a handy guide on what is the Paycheck Protection Program and it can help small businesses in the coronavirus pandemic. https://www.onlinecheck.com/blog/small-business-resources/paycheck-protection-program-for-small-businesses/

1. Program for Small Businesses
The Paycheck Protection
Here is a handy guide on what is the Paycheck Protection Program and it can help small businesses
in the coronavirus pandemic

2. President Donald Trump has passed the CARES bill of $2 trillion
Coronavirus Stimulus Package into law on Friday, March 27th as
support for the U.S. economy that has affected by the Coronavirus
outbreak. The CARES Act includes different support options for
businesses and employees including a Paycheck Protection Program,
Direct payments to taxpayers, unemployment benefits, and small
business financing to struggling entrepreneurs nationwide. The purpose
of this Coronavirus Stimulus Package is to provide financial support to
small businesses.
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3. Paycheck Protection
Program
(PPP)
Loans
Under the Paycheck Protection Program, the U.S. Small
Business Administration (SBA) will provide a $350 billion to
businesses with less than 500 employees. The purpose of
the Paycheck Protection Program loan is to assist small
businesses in maintaining their payroll costs during the
Coronavirus pandemic.

4. This cash-flow assistance will be made via 100 percent federally guaranteed loans to
businesses that maintain their payroll during the Coronavirus outbreak. The loans will be
excused for those businesses that maintain their payroll and employees’ job. This orderly
will help affected businesses and the economy to overcome quickly after the crisis.
The salient features of the Paycheck Protection Program include forgiveness of up to 8
weeks of payroll based on employee retention and salary levels, no SBA fees, and at
least six months of deferral.
If your business is affected by COVID-19 between February 15, 2020, and June 30,
2020, you can apply for PPP loans. These loans are available through June 30, 2020.
You don’t have to visit government institutions to apply as thousands of banks already
participate in the SBA’s lending programs. Simply call your bank or look for SBA-
approved lenders online. You can also apply for an SBA loan directly via the SBA
website.
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5. How to Apply for PPP loans
You can make a loan application to all current SBA
7(a) lenders. The Department of Treasury will also
be in charge of authorizing new lenders, including
the alternative lenders. The loan application
deadline is June 30th, 2020. Applicants can apply
for the PPP loan on the SBA website or Click
here to access the application form.
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6. The Loan Terms and
Interest Rate
The maximum loan term is 10 years with a
maximum interest rate of 4 percent for any
amounts not forgiven without any loan fees and
prepayment fees. However, the SBA will establish
application fee caps for lenders.
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7. Paycheck Protection Program
Loan Amount Calculation
The PPP loan size is calculated based on a business situation. The
maximum loan amount available is $10 million. Examples of loan
calculations:
For businesses affected during February 15, 2019 – June 30, 2019, the
maximum loan equates to 250 percent of your average monthly payroll
costs during that time range. For businesses with seasonal workers, you
can opt to choose March 1, 2019, as your time period start date.
For businesses not in this time range, the maximum loan equates to 250
percent of your average monthly payroll costs between January 1, 2020,
and February 29, 2020.
For businesses that want to refinance an already taken out Economic
Injury Disaster Loan (EIDL) into PPP loan, they can add the outstanding
loan amount to their payroll sum.
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8. Costs covered by the
Paycheck Protection Program
The following costs are covered by the PPP
loan:
Salary, wages, commission, and similar
compensation
Cash tips or equivalent
Payment for sick leave, medical, vacation, or
family
Dismissal or separation allowances
Group health care benefits, such as insurance
premiums
Retirement benefit payment
Payment of taxes evaluated on the employees’
compensation
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9. The Eligible Criteria for Paycheck
Protection Program
Any nonprofit, tribal business concern, self-employed individual,
independent contractor and sole-proprietor that fulfills the SBA’s standard
business size definition and veterans organizations organized under
501(c)(19) with fewer than 500 employees are eligible to apply for small
business loans under the Paycheck Protection Program. The business
needs to be operational as of Feb. 15. According to a fact sheet published
by the U.S. Chamber of Commerce, the 500-employee cap is applied on a
per-physical-location basis for food servicing businesses. If you submit
deceitful information to apply for the loans, you will be charged with
criminal penalties of up to $1 million.
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10. The Use of the Loan Proceeds
The loan proceeds can be used for the following costs:
Payroll costs
The continuation cost of group health care benefits
during periods of paid sick, medical, or family leave,
Any insurance premiums
Salaries, commissions, or similar compensations
Interest payments on mortgages (excluding prepayment
or payment of principal on a mortgage debt)
Rent and utilities
Interest on any other debt obligations that were incurred
before Feb. 15, 2020
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11. How PPP Loans Match with
SBA’s Existing Loans
You can apply for PPP loans with other SBA loan
programs, such as Economic Injury Disaster Loans
(EIDLs), SBA 7(a) loans, SBA 504 loans, and SBA
microloans as well as investment capital from the Small
Business Investment Corporations (SBICs). You cannot
use a PPP loan for the same purpose as your
other SBA loans particularly during the covered period
of February 15, 2019 – June 30, 2019.
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12. The Documentation
Requirement for PPP Loans
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You need to have the following in place to apply for PPP
Loans:
Basic business information
Business NTN number
Average monthly payroll
The number of jobs your business supported
The purpose of using the loan proceeds
List all owners that hold 20 percent ownership (and
confirm they are not involved in federal crimes)
Employees over time and payroll costs.

13. Can the
loan be forgiven?
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The PPP loan includes loan forgiveness covering costs for the first
eight weeks of the loan for businesses to keep employees on payroll
or continue paying bills throughout the COVID19 outbreak. The
forgiven amount will also include payroll costs for individuals below
$100,000 in annual income, mortgage, and rent obligations. The total
amount can be reduced if employees’ wages are reduced. If you
have to lay your employees off due to economic conditions, you can
still preserve some of your loan guarantees by hiring them back.
If you need more details on the Paycheck Protection Program, read it
here in detail in an FAQ here. You can also find more details on
SBA support during Coronavirus on the SBA Coronavirus
resources page.