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Driscoll Anderson Reynard LLP > All Posts  > Small Business Paycheck Protection Program

Small Business Paycheck Protection Program

From Challenging times comes hidden opportunities.  With the recent orders to stay at home and socially isolate while we all try to flatten the curve, this is a unique opportunity to reconnect with loved ones.  Just a few weeks ago, every morning was a blur of coffee, quick breakfasts, getting kids ready for school followed by a flurry of everyone rushing out of the house and off to start the day.

Today is a different day, we have the chance to spend time together (in fact, we may not have a choice since we are ordered to stay at home).

This won’t last forever, and before we know it mornings may begin to look like they did a few weeks ago, running at a fevered pitch to get out of the house.

For now, let’s take this unique opportunity to reconnect with our family, our friends, our pets  and equally important, ourselves.  Call your parents, facetime with your college roommate, spend some time in your neglected garden, these are just a few ways to pass the time.

On a work-related note, many lenders are now accepting applications for the Paycheck Protection Program.   We have been spending hours studying the application process.  Guidance continues to flow from the government at it relates to certain specific uncertainties.  I am aware of many businesses who have already submitted applications.  I have not yet received confirmation from anyone that has actually received funds as of yet, but we are hopeful that relief will be coming soon.

Below is a summary of the program taken directly from Treasury:


The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Fully Forgiven

Funds are provided in the form of loans that will be fully forgiven when 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). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Must Keep Employees on the Payroll—or Rehire Quickly

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.

All Small Businesses Eligible

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible. Businesses with more than 500 employees are eligible in certain industries.

When to Apply

Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.

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

The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury.

Lenders should also visit or for more information.

Other resources:




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