*Please note that the following information is provided as a helpful overview of certain initial terms and conditions of the Paycheck Protection Program only. It is not intended as a definitive statement and should not be relied on nor should it be considered legal advice. For detailed guidance on the terms of the Paycheck Protection Program, please consult the interim final rules produced by the Small Business Association (SBA), the other guidance published thereby, or your legal counsel or other advisors. 


What Is The Paycheck Protection Program?

The Paycheck Protection Program (PPP) is a loan program created by the CARES Act and administered by the Small Business Administration (SBA) that provides government-guaranteed, forgivable loans for qualifying small businesses to maintain their payrolls and pay other qualifying business expenses (meaning that, if you use the loan funds as directed and follow all other program requirements, you will not need to pay the loan back).

How do I apply for a PPP Loan?

You can apply for your PPP funds now with Amur at https://go.amuref.com/amurcustomer

Who qualifies for a ‘first draw’ PPP Loan?

If you are a small business, sole proprietor, independent contractor, or an eligible self-employed individual and you have not yet received a PPP loan, you may qualify if you were in operation on Feb. 15, 2020 and:

  • You have 500 or fewer employees;
  • You are a not for profit, including a church;
  • You are a Section 501(c) organization such as a housing cooperative, business league, or similar organization with 300 or fewer employees; or
  • You are a qualifying news organization or a tribal business with 500 or fewer employees.

Who qualifies for a ‘second draw’ PPP loan?

If you are a small business, sole proprietor, independent contractor, or an eligible self-employed individual and you received a PPP loan in 2020, you may qualify for a ‘second draw’ PPP loan if:

  • You have 300 or fewer employees; 
  • You experienced a revenue reduction of 25% or greater in any quarter of 2020 relative to the same quarter of 2019;
  • You have used, or will use, the full amount of your First Draw PPP loan on or before the expected date on which the Second Draw PPP loan is disbursed to you; and
  • You have used, or will use, the full amount of your First Draw PPP loan on qualifying expenses under applicable PPP rules and guidelines issued by the SBA.

How will my PPP loan size be calculated? 

For most businesses, you will be eligible for a PPP loan equal to an amount that is 2.5 times your business’s (or organization’s) annual average monthly payroll costs.  However, there are certain types of businesses, namely restaurants, hotels, and event venues that have a NAICS code starting with 72, that are eligible for PPP loans equal to 3.5 times annualized average monthly payroll costs for Second Draw loans.  See SBA rules and guidelines for more details on the calculation of PPP loan size. 

What business are now eligible for PPP loans that were previously ineligible?

Under the Economic Aid Act, the SBA has expanded the types of businesses eligible to receive PPP loans.  The businesses that are now eligible to receive funding include: 

  • News organizations;
  • Some hospitals owned by government entities;
  • Electric, telephone, and housing cooperatives;
  • 501(c)(6) organizations and 501(c)(19) tax-exempt veterans’ organizations;
  • Tribal businesses;
  • Destination marketing organizations; and
  • Certain faith-based organizations.

How long will it take to receive PPP funds?

Once a borrower receives a Preferred Lender Program (PLP) number for its loan, the loan is approved by the SBA, and funds are reserved for the borrower. Starting on the date a borrower receives a PLP number, the lender has 10 calendar days to disburse funds. Once the Borrower receives the loan, the borrower has a period of between eight and twenty-four weeks (as selected by the borrower) to spend the PPP loan amount on permitted uses to qualify for forgiveness.

When do I have to repay a Paycheck Protection Program loan?

If you don't apply for forgiveness, your first payment will be due 10 months after you receive your loan with a maturity of five years.  

Can I receive a PPP loan if I have other loans?

Yes, you can qualify for a PPP loan even if you already have other loans, including other SBA loans. However, you cannot use the funds from PPP loans and other loans for duplicate use at the same time. For example, if you use a disaster loan (EIDL) to pay your business’s rent in January, you cannot also apply for a PPP loan to cover January rent.

Will I owe any fees on a loan under the Paycheck Protection Program?

No. Lenders are not allowed to impose fees on borrowers under the program.

Are PPP expenses tax-deductible?

Yes, your PPP expenses will be tax-deductible.

What expenses can I pay with my PPP loan? 

You may use your PPP loan to pay the following items, with the additional requirement that at least 60% of your PPP loan must be spent on payroll costs: 

  • payroll costs;
  • costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums;
  • mortgage interest payments (but not mortgage prepayments or principal payments);
  • rent payments;
  • utility payments;
  • interest payments on any other debt obligations that were incurred before February 15, 2020;
  • refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020;
  • covered operations expenditures (see SBA rules and guidelines for further details);
  • covered property damage costs (see SBA rules and guidelines for further details);
  • covered supplier costs (see SBA rules and guidelines for further details); or
  • covered worker protection expenditures (see SBA rules and guidelines for further details).

How does loan forgiveness work under the Paycheck Protection Program?

To be eligible for forgiveness, all PPP loan amounts must be used on qualifying expenses, including a requirement that 60% of PPP loan amounts be used on payroll.  If you use less than 60% of loan funds on payroll expenses, you will be eligible for partial loan forgiveness.

How do I apply for forgiveness for the Paycheck Protection Program loan I received?

For details on how to apply for forgiveness, visit our Help Center.

Where can I learn more about the PPP program?

You can learn more details about the Paycheck Protection Program at https://www.amuref.com/covid-relief 

For additional information please visit the SBA.gov website