SBA Paycheck Protection Program (PPP)

Click here to get started on a PPP Application
Click here for PPP FAQs

Rebecca, Business Banking Client:

“The importance of quick response time, knowledge, and local decision making couldn’t have been more evident than during the SBA PPP loan process, in which quick action resulted in success that could have been missed if even delayed a day. Within the time frame that my big bank had their online application portal available again, after being taken down, Blackhawk had already secured approval of my loan from the SBA.Had I stayed at my big bank and successfully submitted with the online portal (not guaranteed), I would have been able to apply for the funds just after the first allocation of funds had run out.”   


While the program continues to evolve, changes and clarifications are being actively monitored. The CARES Act allocated just under $350 billion in stimulus help to keep small business workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides federally guaranteed loans to qualifying small businesses.


Borrowers are broadly eligible if they have 500 or fewer employees, or are certain businesses that meet SBA size standards. Additionally, 501(c)(3) nonprofits, 501(c)(19) veterans organizations, and certain tribal concerns qualify for PPP loans. Borrowers may also be sole proprietors, independent contractors, or self-employed.

Borrowers must have been in operation on February 15, 2020, and employed either salaried employees subject to payroll taxes or paid independent contractors. Further, borrowers must certify they meet the criteria above, were impacted by current economic uncertainty, and they will use the funds for allowable uses defined in ‘Loan Terms’ below.

Borrowers must also provide the relevant documentation as part of this certification. Finally, borrowers must certify the information they provide is accurate.

• LOAN TERMS  *details are subject to change*

These first-come, first-served loans are offered until June 30, 2020, or until the program runs out of funds. Loans are capped at the lesser of 250% of a borrower’s average monthly payroll costs, or $10 million. Payroll costs include, but are not limited to, salary, paid leave, medical, and healthcare. Further, salary for employees making more than $100,000 is capped at that level for the calculation of loan size. All loans have a 1% interest rate and a two-year term. Loans are 100% guaranteed by the SBA. Borrowers do not have to make any payments for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment.

PPP loans may be used to pay for payroll costs, mortgage interest obligations, rent obligations, utilities, and any other interest payment on debt obligations accrued before February 15, 2020. SBA requires 75% of the loan to be used for payroll costs, while the remaining 25% can be used for the other expenses. Funds used for purposes other than those outlined above must be repaid by the borrower.


The maxiumum PPP loan amount is $10 million. The maximum loan amount that will be extended to a borrower is $10 million, or an amount determined by a payroll-based formula - whichever amount is less. 

The SBA, in consultation with the Department of the Treasury, provided guidance to assist businesses in calculating their payroll costs for purposes of determining the amount of a PPP loan. Click below to read the publication.
PPP: How To Calculate Max Loan Amount
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