Stimulus Money For Small Businesses

- April 3, 2020

Pay Check Protection Program for Small Businesses

As part of the recent Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus program, $350 Billion has been allocated to help small businesses keep workers.

One of the potentially beneficial parts of the CARES Act is the Payroll Protection Program (PPP). The PPP provides small businesses guaranteed loans, with portions of the loan potentially forgiven so long as the small business keeps employees on the payroll.

Generally, small businesses under 500 employees can apply for the loan, and up to eight weeks of payroll, mortgage, rent, and utilities may be forgiven. You apply through a lender (contact your lender to see if you qualify), and payments (but not interest accrual) are deferred for six months on the loan.

Procedurally, you would then submit payroll expenses and bills to the loan company to apply for forgiveness on the loan. The amount of the loan is up to 2.5 times the average payroll (look to the U.S. Chamber of Commerce Checklist below for specifics) and currently seems to be based on the monthly average of your 2019 payroll.

Unfortunately, the program may be difficult to navigate, and the funds may not be available if you wait too long, as the program is first come first served. The U.S. Chamber of Commerce and other organizations recommend filing early, as there is a growing list of people expected to file and many others lobbying to be eligible for the potential funds.


For the U.S. Chamber of Commerce quicksheet (retrieved April 2, 2020, please look to updated versions or speak with your loan provider), which includes detailed information on the program, look here:

The Paycheck Protection Program Application (retrieved April 2, 2020, please look to updated versions or speak with your loan provider) is available here:

Disclaimer: Information is changing quickly on the loan program. If you have questions or before acting, please look to Small Business Administration guidance on the program and speak with a qualified lender.

Steven M. Jackson Law Group - State Bar of Arizona
Steven M. Jackson Law Group - U.S. Veteran
Steven M. Jackson Law Group - Maricopa County Bar Association