More about the SBA Paycheck Protection Program (PPP) The PPP is a loan program for small businesses, self-employed, independent contractors, nonprofits with a maximum of 500 employees, and it is intended to keep workers paid and employed. The loan amount is calculated based on payroll expenses with a maximum amount of $10 million at a rate of 1% for up to 2 years. The loan is forgivable if 75 percent of the loan amount is used for payroll, and no employees are laid off, or if laid off employees are rehired before June 30, 2020. In addition to payroll costs, allowable expenses include mortgage interest, rent, and utilities. Once pending funds become available, submit your application as soon as possible, even if you may need to rehire employees that have been laid off. Check the PPP Fact Sheet and Frequently Asked Questions, and see details at SBA.gov for more details. Find a lender to contact right away. More about the SBA Economic Injury Disaster Loans (EIDL) and EIDL Advances EIDL is a direct loan for up to $2 million at a rate of 3.75% for small businesses and 2.75% for nonprofits. Applicants can get an Advance of up to $10,000 within days of a successful application, and the Advance doesn’t have to be paid back. Apply directly with the SBA. Contact the SBA by phone at 1-800-659-2955 / 1-800-877-8339 (TTY), or by email at disastercustomerservice@sba.gov.

In order to request the advance of up to $10,000, eligible businesses must apply for the SBA’s Economic Injury Disaster Loan Program at sba.gov. SBA has simplified the application, and the loan and loan advance can both be requested through the Small Business Administration. Businesses who applied before March 30 or those who did not receive a response or appropriate confirmation number will need to reapply or contact SBA for assistance.

Interested borrowers can contact any SBA participating bank, credit union, or nonprofit lenders to apply for the PPP. For more information, contact your local bank or reach out to SBA’s local district offices for assistance.

SBA has published an interim final rule that includes more detailed information about the PPP.

Small businesses with 500 employees or less are eligible to apply for the Economic Injury Disaster Loan (EIDL), the Paycheck Protection Program (PPP), and/or the Small Business Debt Relief Program. Visit SBA’s comprehensive COVID-19 support website to find out more about SBA’s eligibility requirements for each program.

SBA has district offices in California that are open to answer questions. You can use the SBA’s Local Assistance Directory to locate the office nearest you. You can also contact the SBA by phone at 1-800-659-2955 / 1-800-877-8339 (TTY), or by email at disastercustomerservice@sba.gov.

Call or email the SBA to find out which program is right for you. While businesses can apply for and receive more than one form of capital assistance through the SBA, they cannot be used for the same purpose. The SBA can advise you on your options. Call 1-800-659-2955 / 1-800-877-8339 (TTY), or email disastercustomerservice@sba.gov.

SBA has a Debt Relief program and will pay the principal and interest of existing SBA loans. Please contact your lender for information.

California’s network of small business support centers can help you figure out which loans and programs are best for your business, help you develop resiliency strategies, and find other resources. To find the closest center, go to business.ca.gov/centers.