Business Ops April 2, 2020

The 411: The Payment Protection Program for Startups, Independent Contractors, and Self-Employed!

John Saddington @8bit

Note: I'm not an expert and none of this is professional, legal counsel! But, I spent all day on this with my legal and accounting team and we've got a game plan ready to take advantage of this for my startup!

The Deets

Small businesses (that includes startups, independent contractors, and self-employed folks!!) have been given a $349 billion program here in the U.S. that's called The Paycheck Protection Program or PPP — it's part of that larger $2 trillion dollar economic-stimulus plan approved by Congress.

Starting Friday, April 3rd, you'll be able to get some help covering your payroll and other operational costs!

Yes, it's terribly confusing. Yes, they still don't have their 💩 together. Yes, they even have some problems on their current application. Yes, this gives me anxiety.

But, I've been able to find some time to look into it and with some help from experts and friends, put together something that can hopefully help you get to where you need to go.

Who's Eligible?

Businesses with 500 or fewer employees can apply. This includes nonprofits, self-employed individuals, independent contractors and sole proprietorships, as well as veterans and tribal organizations.

Where and When Can I Apply?

The loans will be available at federally insured banks and credit unions, institutions that have already been approved by the SBA (Small Business Administration). Here are some of the most active SBA-approved institutions.


You can start applying THIS FRIDAY, APRIL 3rd and independent contractors and self-employed folks can start on APRIL 10.

So... When Do I Get My Money?

Loans may be approved immediately (same day), according to U.S. officials. This has yet-to-be-seen though.

But don't miss this: It's first-come, first-serve and you should do this immediately.

How Much Can I Get?

As much as two months of your average monthly payroll plus an additional 25% of that amount. Loan total is capped @ $10M.

Do I Need to Pay the Loan Back?

No! This is amazing! As much as 100% of the loan can be "forgiven" if you use the loan for payroll (first 8 weeks), rent, utilities, and mortgage interest. You must keep track of your expenses or you may forfeit the loan and will have to pay! Payroll costs are capped at $100,000 a year for each employee.

Sounds Awesome! How Do I Get My Loan "Forgiven"?

You submit an application at your bank and/or lending institution. Again, review some of the approved SBA financial institutions and you should be good, but there may be restrictions—for instance, Chase Bank may not allow new small business accounts to be used (you must have had an account before February 15th I believe).

What if I Already Laid Off My Staff?

Retroactively available from February 15th! You can effectively re-hire laid-off staff until June 30th!

How Quickly Do I Have to Use the Loan Funds?

Immediately. You must spend the loan to cover payroll and expenses within eight weeks after grant is approved / received.

What are the Terms of the Loan?

Interest rate of 0.5% and it matures in 2 years, with the first payment deferred for six months. That's kind of nice! No personal guarantee or collateral required and no fee to apply and no credit check.

This Sounds Too Good to Be True...

Yes, it does. But, it's real.... and it'll be hard to get it because there's a hard-cap on the amount available and, again, it's first-come, first-serve.


Are There Other Programs Available?

YES! I have a link to other local programs here! There's quit a bit of opportunity to get some relief and help right now!

More Info?

Sure. You can find more here on SBA as well as the Treasury Department.

Finally, a great open source repo is available with actionable steps to take:


Filling out the form takes but a few seconds... but you'll have to find the right lender / bank and you'll want to do all of this ASAP.

I spent most of my day doing this... 🙏🏻

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