How to Apply for the Payroll Protection Program (PPP)

Home > Blog > How to Apply for the Payroll Protection Program (PPP)

It’s no secret that the COVID-19 pandemic has impacted businesses in a big way. To counteract its negative effects, the US Treasury started rolling out the Payroll Protection Program (PPP) last month (click the link here).

The PPP is part of the federal stimulus bills that includes a bipartisan $2 trillion economic relief plan that will offer help to millions of American small businesses that have been affected by the pandemic. The provisions offered will include cash grants, 10-year low-interest loans, and payments to offset payroll expenses, rent, utilities, and employee retention or rehiring. Any part of the loan that is used for these purposes within the first eight weeks of receiving the loan will be forgiven. Meaning you won’t have to pay that part back! 

The Basics of the Payroll Protection Program

Who is eligible for relief?

Nonprofit organizations and businesses with fewer than 500 workers are eligible for aid. This includes freelancers, sole proprietorships, and independent contractors. Larger companies within certain industries are also eligible. To be eligible, your business or organization has to have been in operation on February 15, 2020. 

How much am I eligible to borrow?

Companies can borrow up to two months of average monthly payroll expenses for last year plus an additional 25%, up to $10 million. Payroll expenses are defined as wages, salary, tips, employee benefits including health insurance, state and local taxes, and commissions. 

How do I apply?

You’re required to apply through a bank or other such lender so start by contacting one you and your business already have a relationship with. Many banks are limiting themselves to work with only existing business customers. The SBA does have a tool that allows you to search for nearby lenders, but again, they may not be taking new customers. 

Why is my bank saying there’s an issue with my application?

There have been some problems with getting the program up and running quickly. While the Treasury Department stated that applications would start on April 3, a week after the bill was signed into law, the department didn’t give lenders the information they needed until hours before the program started. As a result, many lenders are still developing their application systems. While yes, it may be frustrating, continue to work with your bank and stay up-to-date as the application process should be available shortly.

Will the money for the loans run out?

It probably will and it could happen quickly. The program has limited funding and works on a first-come-first-served basis. The Trump administration has said that they will ask Congress for more money if the aid runs out, but Congress will have the final say and this could take several more weeks. We say this to say that if you have not already, you should get in contact with your lender immediately.

Blog categories
Create a better future for your law firm
Written By Erik J. Olson
Founder & CEO
Erik J. Olson is the Founder & CEO of Array Digital—a marketing agency that enables its clients to achieve their dreams, fulfill their missions, and impact more lives with their services.

Everything you need to know about hiring a digital marketing agency:

This 30-page guide covers:
  • The four pillars of digital marketing
  • Digital marketing options and costs
  • The pitfalls to avoid
  • What to expect when working with an agency
  • The qualities to look for in a digital marketing agency

Extraordinary Results

  • “Erik and the Array Digital team are top notch in the digital marketing spaces, particularly for SEO. Their understanding of Google, the algorithms, and the work involved to get websites ranking on the first page is unparalleled. Thank you Erik!!”

    Andrew Zihmer
    Zihmer Law Firm
  • “I had a chance to consult with Kevin Daisey for my law firm’s marketing needs. He is knowledgeable, kind, and helpful. He provided me with a great marketing analysis. He also invited me to their podcast as a guest speaker. Thank you Array Digital!”

    Merve Kati
    ZMK Law
  • “Since starting with Array Digital in November 2020, I have more than tripled my intake. I added two attorneys and have added administrative staff to handle all the new business being generated. And, we are in the process of moving into a larger office suite to accommodate the growth.”

    Rebecca Melone
    Melone Hatley, P.C.
  • “The legal profession needs more architects and designers…folks who are thinking about the future of the profession and who are assembling a tribe of like minded lawyer leaders. Erik and his team are certainly ‘that’.”

    Ben Glass
    Ben Glass Law & Great Legal Marketing
Stop wasting your money on agencies that can’t get it done.
Digital marketing for Law firm