Starting on April 3, 2020, small businesses and sole proprietorships can apply for Paycheck Protection Program (PPP) loans, according to the United State Treasury.

The PPP is part of the Coronavirus Aid, Relief, and Economic Security Act (CARES) passed by Congress and signed into law on March 27, 2020.

The CARES Act permits the PPP’s forgivable loans to pay for up to eight weeks of payroll costs, including benefits and other costs. In addition to payroll, recipients also can use PPP funds to pay interest on mortgages, rent, and utilities.


Small businesses applying for PPP loans must submit documentation, such as but not limited to payroll processor records or payroll tax filings, that establishes their eligibility for the loans.

The interim final rule issued on April 2, 2020 clarified that the SBA will allow lenders to rely on the borrower’s documentation to determine if the borrower is eligible for the loans. Lenders can accept e-signatures and e-consents.

Lenders who comply with the obligations laid out in the interim final rule will not be held responsible if the borrower submits fraudulent or inaccurate information.

The application can be found on the Small Business Administration (SBA) website.

Loan Amounts

Under the PPP, the maximum loan amount is the lesser of $10 million or an amount calculated using a payroll-based formula specified in the CARES Act. Note: You can access free loan calculators on the AICPA’s PPP resource page.

Loan Availability

PPP loans will be available through June 30, 2020, or until the funds run out. Due to expected high demand, Treasury recommends that applications be submitted as soon as possible.