Friday, April 3rd, 2020 marked the first day that small businesses, self-employed individuals, sole proprietors and independent contractors could begin applying for the Payment Protection Program (PPP) passed as part of the U.S. federal government’s record $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act aka the “CARES Act”.

The bill provides eligible applicants a way to stem the economic damage of COVID-19 through a low-interest loan up to 2.5 times of 2019’s payroll costs.

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.