## How to Apply for the Paycheck Protection Program (PPP) Small Business Loan
The Paycheck Protection Program (PPP) is a loan program designed to help small businesses keep their employees on the payroll during the COVID-19 pandemic. The program provides loans of up to $10 million to businesses with 500 or fewer employees.
**Who is eligible for the PPP?**
To be eligible for the PPP, businesses must meet the following criteria:
* Be a small business with 500 or fewer employees
* Have been in operation for at least one year
* Have a physical location in the United States
* Have not received a loan under the Economic Injury Disaster Loan (EIDL) program
* Be able to certify that the loan is necessary due to the COVID-19 pandemic
**How much can I borrow under the PPP?**
The maximum amount that you can borrow under the PPP is based on your average monthly payroll costs over the past 12 months. The loan amount is equal to 2.5 times your average monthly payroll costs, up to a maximum of $10 million.
**What are the terms of the PPP loan?**
The PPP loan has a term of two years and an interest rate of 1%. The loan is fully forgiven if the proceeds are used to cover payroll costs, mortgage interest, rent, and utilities.
**How do I apply for the PPP loan?**
You can apply for the PPP loan through any participating lender. The application process is relatively simple and can be completed online.
To apply for the PPP loan, you will need to provide the following information:
* Your business name and address
* Your Employer Identification Number (EIN)
* Your average monthly payroll costs
* The number of employees on your payroll
* A statement certifying that you meet the eligibility requirements
**What happens after I apply for the PPP loan?**
Once you apply for the PPP loan, your lender will review your application and make a decision on whether to approve your loan. If your loan is approved, the lender will disburse the funds to your business.
**How do I use the PPP loan?**
The proceeds of the PPP loan can be used to cover the following expenses:
* Payroll costs
* Mortgage interest
* Rent
* Utilities
The loan proceeds must be used within eight weeks of the date of disbursement.
**What are the benefits of the PPP loan?**
The PPP loan program offers a number of benefits for small businesses, including:
* Low interest rate of 1%
* Loan forgiveness if the proceeds are used to cover payroll costs
* No collateral required
**How can I learn more about the PPP loan?**
For more information about the PPP loan program, visit the Small Business Administration’s website at https://www.sba.gov/loans-grants/coronavirus-relief-options/paycheck-protection-program.
## Additional Resources
* [PPP Loan Forgiveness Application](https://www.sba.gov/document/ppp-loan-forgiveness-application)
* [PPP Loan Forgiveness Calculator](https://www.sba.gov/tools/sba-loan-forgiveness-calculator)
* [PPP Loan FAQs](https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/frequently-asked-questions)