How much can I borrow for a Paycheck Protection Program loan?

In this 2-minute read: 

  • How much can my business borrow under the SBA’s Paycheck Protection Program?
  • Additional PPP and small business resources during COVID-19

The federal government has allocated $2 trillion under the new CARES Act. This money is intended to help individuals, families, and businesses through the financial challenges of the COVID-19 pandemic. 

IMPORTANT UPDATE: On June 5, 2020, President Trump signed into law new updates to PPP loan forgiveness requirements, extending the covered period to 24 weeks, reducing the minimum loan funding that must be spent on payroll to 60%, and easing the requirements for maintaining staffing and compensation levels. Please read the details here.

The Paycheck Protection Program (PPP)—the part of the CARES Act that’s dedicated to the support of small businesses—allows qualifying businesses to apply for loans to help them get through the next couple of months. 

Sign up for your Womply Free account and we’ll keep you updated on new funding opportunities. Customer relationships thrive when local businesses and consumers are connected through Womply data and technology.

How much can my business borrow for a PPP loan?

The easiest way to find out how much your business can borrow for a PPP loan is by using our simple PPP loan calculator.

Just click the link above, and within seconds you’ll know approximately how much your business can borrow. It’s that simple!

What determines how much my business can borrow for a PPP loan?

The Small Business Administration (SBA) states that small businesses can borrow 2.5 times their average monthly payroll costs. However, that number cannot exceed $10 million, and employee salaries over $100K per year are capped at that amount when determining your payroll and for loan forgiveness. 

This average is determined by your payroll costs over the past year and averaged out. For a deeper look at how this number is calculated, read our full article about how to calculate your average monthly payroll for PPP loans

Independent contractors, self-employed individuals, and sole proprietors can also apply for PPP loans, but the treasury department has issued some additional clarifications and requirements for these loans, which you can learn about here.

In order to borrow this sum of money, you must also be able to certify in good faith that you will be using 60% (previously 75%) or more of your loan to go towards maintaining your employee headcount and compensation levels, and keeping up with payroll expenses. 

Go deeper: How your business should spend your Paycheck Protection Program or SBA relief money

Read our complete PPP FAQs here.

Additional PPP resources

If you have more questions about PPP loans and how to navigate through the application process, check out these additional resources:

There’s still time to apply for a PPP loan, but hurry! The extended deadline for application is August 8, 2020

If you haven’t applied for your PPP loan and you determine it’s right for you, there is still time. Talk to your lender and get your application submitted ASAP.

Sign up for your Womply Free account and we’ll keep you updated on new funding opportunities. Customer relationships thrive when local businesses and consumers are connected through Womply data and technology.


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