Learn about PPP small business loans and eligibility requirements
Prepare your business for a PPP loan and calculate its potential value
Find an eligible PPP lender and walk through the application process
Learn how to document your business expenses for future PPP loan forgiveness
about Paycheck Protection Plans
What is PPP?
In response to the undue economic stress caused by the pandemic, Congress passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March 2020. The Act provides financial assistance for individuals and families, states, and businesses impacted by COVID-19. A critical part of this stimulus bill is the Small Business Paycheck Protection Program (PPP), which offers billions of dollars in potentially forgivable loans through the U.S. Small Business Administration (SBA) to small businesses, so they can stay afloat and keep their workers on payroll during the crisis. Initial program funds of $349 billion ran out on April 16, 2020, but Congress approved additional funding of more than $300 billion on April 23, 2020. Eligible businesses are strongly encouraged to work with lenders now to prepare their applications and be ready to take advantage of these additional funds.
*Additional PPP resource for historically disadvantaged demographic groups:
The Massachusetts Equitable PPP Access Initiative is committed to providing timely and equitable access to the SBA Paycheck Protect Program (PPP) loans for underbanked businesses and historically disadvantaged demographic groups, including people of color and women. As part of this initiative, a coalition of banks are committing to making PPP loans directly, and a network of CDFIs are providing technical assistance with loan applications. If you are a minority-owned business and meet the criteria below, we encourage you to apply through this initiative.
Is my business eligible for a PPP loan?
- You are a small business and have 500 or fewer employees OR no greater than the number of employees set by the SBA as the size standard for certain industries
- Your principal place of residence is in the United States.
- You were in operation on February 15, 2020
- You have documentation including payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship
- You do not meet criteria for businesses that are not eligible - outlined here
Is my business classified as a small business?
Small businesses may include a 501(c)(3) nonprofit organization, a 501(c)(19) veterans' organization, a tribal business, an individual who operates under a sole proprietorship, an individual who operates as an independent contractor, or an individual who is self-employed
Is my business eligible for PPP loan forgiveness?
- If you maintain your employee level or rehire the employees you laid off during the beginning weeks of the pandemic by June
- If you do not reduce wages paid to employees by 25% or more
- If 75% of the loan will be used on payroll costs alone
- If funds will be used for payroll costs, interest on mortgages, rent, and utilities
your business for success
2. Complete PPP Borrower Application Form.
Here is a link to a PDF version of Form 2483 (Paycheck Protection Program Borrower Application Form)
3. Prepare related documentation of your small business.
Support of the payroll costs form one of the following:
- IRS Forms 941 for 3/31/19, 6/30/19, 9/30/19, and 12/31/19 OR
- IRS Form 940 for the year ended 12/31/19 OR
- Payroll Reports: Summary report for the 12 months ending 2019 (gross wages prior to Section 125 or Deductions), Report detailing each employee and their gross pay for the 12 months ending 2019 (total should agree with summary report), Report detailing vacation, severance pay, group health benefits, retirement benefits, etc.
- 12 months most recent bank statements
- IRS Forms W-2, W-3 for 2019 (Required)
Support of the following:
- Supporting documentation for health, dental, and retirement benefits paid for calendar 2019
- A schedule summarizing each category of these costs
- Copies of state unemployment tax filings for 2019
Independent contractors and self-employed individuals must provide support of the payroll costs from the following:
- Schedule C Form 1040
- Form 1099
- Income and expense reports from year prior
your PPP loan application today
What if my business already has an existing relationship with a lender?
If your small business already has a relationship with a lender, check to see if they are an eligible PPP loan provider. If they are an eligible lender and have capacity for your loan, proceed with the loan application process specific to their institution.
What if my business does not have an existing relationship with a lender?
- Here is a list of local SBA lenders with current capacity for new clients - PDF Version
- Here is an article outlining the top SBA lenders nationally
- Here is a list of Massachusetts Community Development Financial Institutions (CDFIs) that are eligible to make PPP loans and are accepting new customers:
- OneUnited Bank, Boston
- Cape & Islands Community Development Inc., Centerville
- Dorchester Bay Neighborhood Loan Fund, Dorchester
- North Central Massachusetts Development Corporation, Fitchburg
- Workers Credit Union, Fitchburg
- New Bedford Economic Development Council, Inc., New Bedford
- Greylock Federal Credit Union, Pittsfield
- Common Capital, Inc., Springfield
- South Eastern Economic Development Corporation, Taunton
- Here is a list of non-bank “FinTech” lenders that are accepting PPP applications.
Once I have found an eligible PPP lender, how do I apply?
- Complete the loan process of the eligible PPP lender you have chosen, filling out Form 2483 and providing all necessary documentation required by the guidelines specific to your institution
- Ensure you have provided up to date methods of communication
- Actively track the status of your application and provide any additional follow up information needed by the lending institution
- You will be contacted as soon as possible to sign your loan application if your business meets the lenders requirements
- Proceed to the forgiveness section to position your business for maximum potential PPP loan forgiveness
position your business for PPP forgiveness
1. Track your application.
- If your lender provides a method to track your application, be sure to check regularly for status updates requiring immediate attention
- Actively monitor your selected methods of communications for updated application status or additional requests by your lender requiring immediate attention
2. Diligently record business expenses.
- To be eligible for PPP loan forgiveness, it is important that you document all of your related business expenses for at least 24 weeks
- A video tutorial of how to track expenses can be found here. Additionally, a spreadsheet template to track your expenses can be found here
- Expense record keeping and reporting should be continued for at least 8 weeks following receipt of your loan, at which point you should proceed with submitting the PPP Loan Forgiveness Form
3. Complete and submit your PPP loan forgiveness application.
- Forgiveness of your PPP loan is not automatic and requires you to submit a PPP loan forgiveness application which can be found here
- You will need to review the requirements surrounding if your loan is eligible for forgiveness. A good forgiveness checklist can be found here and a tool to create your loan forgiveness application can be found here.
- You will need to include the expense report you have created in the step prior, along with any additional information requested during the application process
- If your loan is not eligible for loan forgiveness, or you do not submit the forgiveness application, the maturity date of the loan is 5 years from the time of approval with an interest rate of 1% of the loans value