Paycheck Protection Program (PPP)

Last Updated 4-27-2020.

CRITICAL UPDATE - Funds for the Paycheck Protection Program (PPP) have been replenished. We encourage all business owners to apply as soon as possible, as these funds are expected to run out very quickly!

Community Ventures is not processing applications for the Paycheck Protection Program. We are still providing technical assistance to clients who may have questions regarding this or other assistance, but applications need to be made through your bank or credit union. If you have questions, please reach out to your Business Development Specialist or to our Support Team at cvcustomersupport@cvky.org.

The SBA Paycheck Protection Program (PPP) 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. These loans are backed by the SBA through local lenders.

  • Offered to small businesses with fewer than 500 employees, select types of business with fewer than 1,500 employees, 501(c)(3) non-profits with fewer than 500 workers and some (501(c)(19) veteran organizations (have to be in operation before February 15, 2020).
  • Self-employed, sole proprietors, freelance and gig economy workers are also eligible to apply.
  • Loans are given up to a maximum of the lesser of $10 million, or 2.5 times the average monthly payroll costs - including wages for employees making under $100,000, as well as expenses for paid sick leave, healthcare and other benefits - during the 1-year period before the date on which the loan was made.
  • Maximum interest rate is 1%.
  • Loan term up to 10 years.
  • No personal guarantee or collateral required.
  • Payments deferred 6-12 months.
  • A portion of this loan may be forgiven and not counted as income to you, if spent during the first eight weeks on operating expenses.
  • The latest guidance indicates that borrowers CAN apply for the PPP loan and an Economic Injury Disaster Loan (EIDL) as long as the loans are for different types of expenses.

Loans are forgiven when the proceeds are used for any of these costs:

  • Payroll costs, excluding prorated amounts for individuals with compensation greater than $100,000
  • Rent pursuant to a lease in force before February 15, 2020
  • Electricity, gas, water, transportation, telephone, or internet access expenses for services which began before February 15, 2020
  • Group health insurance premiums and other healthcare costs
  • NOTE: In order for the amounts to be forgiven, business owners must maintain the same average number of employees for the first eight-week period beginning on the origination date of the loan as you did from February 15, 2019 - June 30, 2019 or from January 1, 2020 until February 15, 2020. If you don’t meet this requirement, the amount forgiven is reduced. You incur additional reductions if you cut compensation for employees who make under $100,000 by more than 25% as compared to the most recent quarter. However, you wont be penalized for a reduction in employment or wages during the period from February 15, 2020 to April 26, 2020, if you rehire employees that you previously laid off or restore any decreases in wages or salaries by June 30, 2020.
  • You will apply for the Paycheck Protection Loan directly through your local lending institution.

More details will be released soon from the federal government regarding details of the program, including the list of lenders offering loans under the program. Below are helpful guides with more information about the program. Resources: Coronavirus Emergency Loans Small Business Guide and Checklist Paycheck Protection Program FAQs for Small Businesses SBA Website - Paycheck Protection Program Have additional questions about the COVID-19 impact to your business? Call us at (859) 231-0054 or email Lew Whalen at lwhalen@cvky.org. If you have questions for SBA, please visit sba.gov/disaster to learn more about these programs. NOTE: Please be aware of the potential for scams, fraud and abuse, related to the economic recovery from the COVID-19 outbreak. If you have questions or concerns about information you have received about the Paycheck Protection Program, the Economic Injury Disaster Loan, or any other support services available, you can contact us at (859) 231-0054 or email Lew Whalen at lwhalen@cvky.org. We will help to get your questions answered from verified sources.

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