SBA Paycheck Protection Program
FAQ
Application
The SBA Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to small 
businesses to pay their employees during the COVID-19 crisis.
LOANS WILL BE FORGIVEN IF:
1. The loan proceeds are used to cover payroll costs, most mortgage interest, rent, and utility costs over the 8-week period after the loan is made
2. Employee and compensation levels must be maintained. You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020, and April 26, 2020
When can I apply? Starting April 3, 2020. FUNDS MOST LIKELY WILL RUN OUT BEFORE THE DEADLINE TO APPLY (JUNE 30, 2020)
Where can I apply? You can apply through any existing SBA lender
Who can apply? Any business with 500 or fewer employees can apply
What do I need to apply? Collateral or personal guarantee are not required.
You will need to submit to your lender the following:
1. SBA PPP application
2. The required documentation to verify your payroll costs
How large can my loan be? Up to 2.25 times your monthly payroll with a $10 million cap
How much of my loan will be forgiven? You will owe money when your loan is due ONLY IF:
1. You do not maintain your staff and payroll
2. You use the loan amount for ANYTHING OTHER than payroll costs, mortgage interest, rent, and utility costs over the 8 weeks after getting the loan
How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. The lender must make a decision on the forgiveness of the loan within 60 days
What is my interest rate? 1 % fixed interest rate
When do I need to start paying interest on my loan? All payments are deferred for 6 months
When is my loan due? In 2 years
Source: U.S. Department of the Treasury
Gabriel Prado | Director of Economic Development Department of Economic Development | City of Clinton, MS
T: 601-291-8275 | E: [email protected] | W: www.clintonms.org
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Resources for Businesses
Resources and information for our business community on responding to the COVID-19 (coronavirus) pandemic from the Clinton Chamber of Commerce. More...