The Paycheck Protection Program (PPP) authorized up to $349 billion in forgivable loans for small businesses to pay their employees during the COVID-19 crisis – and initial interest in the program has been so high there are active discussions to increase the funding. 

April 24, 2020 UPDATE

The Senate recently approved $370 billion in additional funding for small businesses through programs administered by the U.S. Small Business Administration (SBA) as part of a new COVID-19 pandemic relief bill. The $310 billion for the PPP sets aside $60 billion in loans to be made by small banks, credit unions, minority-owned banks, and other small lenders.


Many clients have now been approved and are receiving their Paycheck Protection Program (PPP) loan proceeds. We have compiled some details about what next steps may look for your organization.

The loans details:

Loan Forgiveness under the Paycheck Protection Program The Loan amount may be eligible for forgiveness pursuant to the Paycheck Protection Program, which minimally requires (1) at least 75% of the loan proceeds are used to cover payroll costs and the remainder is used for mortgage interest, rent and utility costs over the 8 week period after the loan is made, and (2) the number of employees and compensation levels are generally maintained. Additional requirements may apply.

Should you have any questions on the above, please visit the Internal Revenue Services website for further information. 

Financial Relief in a Time of COVID-19

At Paypro, we are continuously monitoring the news regarding COVID-19 and want our clients to know we are here to help. You may have seen in recent news that the government is offering multiple stimulus packages to small businesses to help alleviate the financial burden many may be experiencing during this unprecedented time.

We are recommending that our clients consider the PPP. This program offers forgivable loans up to $10 million for organizations under 500 employees, to use on certain expenses such as payroll. Applications have been accepted since Friday, April 3rd.

Another useful program involves employee retention credit. Here are some details:

Delay of employer payroll taxes is another option that allows eligible employers and self-employed people to defer paying a 6.2 percent Social Security tax on employee wages. The deferred employment tax will need to be paid out during the following two years: half by Dec. 31, 2021, and the other half by Dec. 31, 2022.

No matter which stimulus package is most suitable for your small business, our team at Paypro will be with you every step of the way. If you have any questions, please feel free to reach out to us – we will all get through this together.

Is My Small Business Eligible for PPP?

The purpose of the PPP is to help as many businesses as possible that are affected by the COVID-19 pandemic. Eligibility requirements include:

Additionally, some special rules may make you eligible, such as if your business is in the accommodation and food services sector, or if you are operating as a franchise. For more information about eligibility requirements, contact our team at Paypro today.

When Can I Apply for PPP?

Since April 3rd, 2020, small businesses and sole proprietorships have been able to apply for and receive small business loans to cover their payroll and other certain expenses through existing SBA lenders. Since April 10th, 2020, independent contractors and self-employed individuals have applied for and received small business loans during coronavirus. As soon as other regulated lenders are approved and enrolled in the program, they will be available to make these loans as well.

Where Can I Apply for PPP?

It’s important to first check with your lender, but applications can be completed through any existing SBA lender federally insured depository institutions, federally insured credit union or participating Farm Credit System.

What Do I Need to Apply for PPP?

You will need to complete the PPP loan application, and submit it along with your lender and payroll documentation. Although the program is open until June 30, 2020, apply as quickly as possible, since there is a funding cap and lenders need time to process your loan.

What Can I Use PPP Loans For?

You should use the proceeds from PPP loans on:

For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, proceeds from PPP loans are capped at $100,000 on an annualized basis for each employee.

Paypro WFM Solutions For Small Businesses

With over 27 years of operational experience, our team at Paypro has helped a variety of small businesses tackle new problems. We provide WFM solutions, identify unique restrictions, and work with businesses on customized programs to help them through challenging situations. Contact us today to see how we can help you.

About The Author

Ingrid Principe

Ingrid is the Content Marketing Manager at Paypro, managing both inbound and outbound marketing initiatives for the company. She has 15+ years’ of extensive marketing communications experience, leveraging brand awareness and strategic partnerships to increase sales revenue for a diverse group of B2B brands.