Following the second round of CARES Act funding, the Small Business Administration (SBA) has resumed accepting Paycheck Protection Program (PPP) applications from participating lenders. Nonprofits with less than 500 employees are eligible to apply for this federal relief measure.
About the Paycheck Protection Program
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.
Have questions? Read the Frequently Asked Questions for Lenders and Borrowers
Wondering how much you can apply for? Read How to Calculate Loan Amounts
Need a lender? Search SBA’s list of Eligible Paycheck Protection Program Lenders
Anne Arundel Economic Development Corporation has also compiled a list of fin tech companies accepting PPP applications.
Looking for other funding options? Enhanced Debt Relief is available through SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
If you did not apply for PPP in the last round, and are curious about applying now, read Nonprofit Quarterly’s article The PPP: The Experience of It All and Advice for New Nonprofit Applicants.
Has your organization already applied for the PPP? Free free to share your experiences with us so we are better aware of the impact of this program on our partners!