The CARES Act established the Paycheck Protection Program intended to provide eligible small businesses with eight weeks of cash-flow assistance as a direct incentive to keep their workers on the payroll. The loans are 100 percent federally guaranteed loans from the U.S. SBA. The amount any small business is eligible to borrow and be forgiven is 250 percent of their average monthly payroll expenses, up to a total of $10 million.

Who Can Apply

The following entities affected by COVID-19 are eligible to apply:

Additional criteria:

Loan Amount

The maximum loan amount is the lesser of 2.5 times the business’ average monthly payroll costs based on the previous 12-month period, or $10 million. Payroll costs are capped at $100,000 annualized for each employee (ex. $100,000 maximum individual amount / 12 months * 2.5 = $20,833).

Applicants are responsible for determining payroll costs and attest under perjury eligibility.

Payroll costs include:

Operating expenses include:

Average monthly payroll period:

Loan Terms & Forgiveness

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

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.

Any amount of the loan not forgiven will be converted into a two-year term loan with a fixed interest rate of one percent; however, no payments are required for the first six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

To apply for forgiveness, small businesses must submit documentation regarding the eligible uses of loan funds (payroll costs, mortgage interest, utilities, etc.), a certification that such documents are true and correct, as well the amount to be forgiven, and any other documentation deemed necessary by the SBA to the lender that is servicing your loan.

Deadline and How to Apply

As of April 22, 2020 the PPP was replenished and financial institutions are now accepting new applications at this time based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed.

Businesses can apply for a PPP loan at any lending institution that is approved to participate in the SBA 7(a) lending program. Additional lenders and non-traditional lenders will be approved by the Department of Treasury. This could be the bank you already use or a nearby bank.

You should contact your primary business banker. If your banker does not participate in the program, they can refer you to a local participating bank. You may also find SBA-approved lenders in your area through SBA’s online Lender Match Tool.

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.

Additional Rules and Guidance

For additional FAQs about the PPP program, click here.

Need Assistance?

For application status inquiries and/or questions about the loan program:

Please contact the SBA at 1-800-659-2955 (TTY: 1-800-877-8339) or

For assistance with completing an application:

Colorado SBDC disaster recovery specialists provide one-on-one confidential consulting at no cost to help businesses prepare disaster loan applications and assist with other post-disaster challenges. Please note that consultations are taking place via phone call or virtual meeting. Due to the COVID-19 pandemic, we are experiencing high volumes of calls, emails, and requests for consulting. We will work to respond to your request as quickly as possible. We ask that you remain patient during this time and we’ll be in touch with you as soon as possible.

Find your local SBDC office by clicking here.