Coronavirus Business Resources

How To Apply for the Paycheck Protection Program

Update 4/25/2020: The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 A.M. EDT from approved lenders on behalf of any eligible borrower. Click here to read the official statement.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

To determine if your business is eligible for this type of funding, check out this handy guide from the U.S. Chamber of Commerce.

Paycheck Protection Program Details

  • Businesses of up to 500 employees are eligible, and businesses in the Accommodations and Food Services Sector are eligible if they have up to 500 employees at each location.
  • 501(c)3 nonprofits with fewer than 500 employees, sole proprietors, the self-employed, and independent contractors are also eligible.
  • All lenders can provide loans and the SBA’s usual requirement that businesses be unable to obtain credit elsewhere is waived.
  • The loans can be for up to 2.5 months of payroll costs, not to exceed $10 million and excluding compensation paid to individuals above $100,000/year.
  • The borrower must certify that the loan will be used to retain workers, maintain payroll, make mortgage or lease payments, and pay utilities, but no personal guarantee or collateral is required.
  • Payments of all fees, principal, and interest is deferred for between 6 months and 1 year.

The portion of the loan equal to payroll costs (subject to the above limit), mortgage interest, rent, and utility payments for eight weeks following the origination of the loan will be forgiven. The loan forgiveness will be proportionally reduced if the borrower reduces employment or salary and wages.

Application Process:


How to apply:

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. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at

Find Eligible Lenders

When to apply:

  • Starting April 3rd, 2020, small businesses and sole proprietorships can apply;
  • Starting April 10th, 2020, independent contractors and self-employed individuals can apply;
  • Apply as quickly as possible because there is a funding cap for the program.

Documents Needed to Apply:

In addition to your completed SBA Paycheck Protection Program application, you should have the following documents and information available and ready to review with your banker:

  • Articles of incorporation for each borrowing entity
  • By-laws or operating agreement for each borrowing entity
  • Copies of each owner’s driver’s license
  • Payroll expense verification documents
  • IRS forms 940 and 941
  • Payroll summary report with corresponding bank statements
  • Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.)
  • 1099s (if you are an independent contractor)
  • Certification that all employees live within the United States
  • If any do not, provide a detailed list with corresponding salaries
  • Trailing twelve-month profit and loss statement (as of the date of application) for all applicants
  • Most recent mortgage or rent statement
  • Most recent utility bills


Borrower FAQ
Lender FAQ


Can a business receive both a Paycheck Protection Program loan and an EIDL? What are the relevant considerations for deciding which type of loan is more appropriate?

Generally, a business can apply for loans under both the Paycheck Protection Program and the EIDL program but must use the EIDL for a purpose other than covering payroll costs.

To determine whether to apply for a Paycheck Protection Program loan or EIDL, businesses should consider the following:

  • Eligibility: As described in detail in this Advisory, the eligibility requirements are somewhat different for each program.
  • Maximum Loan Amounts: Paycheck Protection Program loans are capped at $10 million, with an applicant’s limit determined by a formula tied to payroll costs; EIDLs are capped at $2 million.
  • Loan Forgiveness: Paycheck Protection Program loans may be eligible for loan forgiveness; EIDLs have no such feature. However, EIDL applicants may receive an emergency grant of up to $10,000 that does not have to be repaid.
  • Maximum Maturity: Paycheck Protection Program loans can have maturities of up to 10 years, with no obligation to make payments under the loan for up to the first 12 months. EIDLs can have maturities up to 30 years. EIDL payments can also be deferred for up to a year; however, interest accrues during deferment periods.
  • Interest Rates: Paycheck Protection Program loan interest rates are capped at 4%. The EIDL interest rates for COVID-19 are 3.75% for businesses and 2.75% for nonprofit organizations.

Still have questions ?

To talk to a Loudoun Economic Development staff member visit our Contact Us page.

The Loudoun SBDC has coaches that can help you with loan package preparation. If you have questions about the process or need assistance in gathering information or filling out application forms contact us and we will get you connected with a coach as soon as possible.

Email Loudoun SBDC or call us at (703)466-0466 to learn more.

An Independent Contractor’s Guide to CARES Act Relief. Read more. Leer en Español.

EIDL vs PPP Loans 4 3 20
Presented by Loudoun SBDC

Comparison of the SBA Emergency Loans