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Paycheck Protection Program 101

What is the Paycheck Protection Program (PPP)?

The PPP is part of the $2.2 CARES Act signed into law recently. The PPP will provide 100% federally guaranteed loans to small businesses. More significantly, these loans may be forgiven if the borrower maintains payroll levels during the pandemic.

Who qualifies? Businesses and 501c(3) not for profits with less than 500 employees. Sole proprietors, independent contractors, and self-employed individuals also qualify.

How much can I borrow? 2.5 times the average monthly payroll costs incurred in the year prior to the loan date. Payroll costs include
• Wages, commissions, or similar compensation
• Payment of cash tips
• Payments for vacation, parental, family, medical, or sick leave
• Allowance for dismissal or separation
• Payments required for group health benefits, including health insurance premiums
• Payment of any retirement benefit
• Payment of any state or local tax assessed on the compensation of the employee

How much will be forgiven? The business will be eligible for loan forgiveness equal to the amounts spent on the following items during the 8 week period that begins on loan origination date.

NPS will be conducting informational webinars on the Paycheck Protection Program. Please sign up below if you want to be invited to one of the webinars. Once you sign up, you will be sent an email with the webinar information.

Sign Up for the Paycheck Protection Program Webinar

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What’s on Your Reading List?
We’re always learning new ideas to improve our clients’ lives. Here are some of our favorite books—and we hope they’ll become yours, too:
  • The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It, by Michael E. Gerber
  • Profit First: A Simple System to Transform Any Business from a Cash-Eating Monster to a Money-Making Machine, by Mike Michalowicz
  • Managing by the Numbers: A Commonsense Guide to Understanding and Using Your Company’s Financials, by Chuck Kremer, Ron Rizzuto and John Case
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