Read about our COVID-19 financial relief efforts, including the Paycheck Protection Program for businesses.
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- SBA loans /
- Paycheck Protection Program
Paycheck Protection Program
An update on the Paycheck Protection Program
Congress has authorized additional funding to the Small Business Association for the Paycheck Protection Program.
The SBA Paycheck Protection Program (PPP)
The PPP is a federal loan program that helps small and medium-sized businesses impacted by the coronavirus (COVID-19) to assist with covering costs related to payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt. The loan is an SBA 7(a) loan.
Features
- 1.00% fixed interest rate
- Loan amounts up to 2.5x average covered monthly payroll costs, not to exceed $10 million
- No fees
- No prepayment penalties
- No business collateral or personal guarantee required
- Loan forgiveness for eligible payroll, mortgage interest, rent and utilities during the covered eight-week period after origination
- Payments are deferred for six months
The Paycheck Protection Program is part of an economic stimulus package known as the CARES Act.
Loan use
Loans are to be used for payroll costs (excluding amounts above a prorated annual salary of $100,000 for employees who make more than that amount), mortgage/debt interest, rent and utilities and refinancing an SBA Economic Injury Disaster Loan (EIDL) made between January 31, 2020 - April 3, 2020.
Frequently asked questions
We have compiled the following information as a resource to business owners. For specific questions related to the eligibility of your business, please visit the Small Business Administration or U.S. Treasury Paycheck Protection Program.
Application process
- Businesses and entities in operation on February 15, 2020
- Small Businesses, 501(c)(3) nonprofits, 501(c)(19) veterans organizations or tribal business concerns that have fewer than 500 employees or otherwise meet the SBA size standard
- Businesses in the accommodation and food service sector that employ 500 or fewer employees per physical location
- Businesses who have already received an Economic Injury Disaster Loan (EIDL) but have not used it for the same purpose
Additional program qualifications may apply, please refer to the Small Business Administration or U.S. Treasury Paycheck Protection Program for full program details.
You may begin the process through our online application.
As part of the SBA PPP application process, there is no credit check, no personal guarantee from business owners and no collateral requirements. Your business must meet the eligibility requirements of this program and provide supporting documentation to confirm the available loan amount for your company. Upon submitting to this program, you certified that your business is eligible under the Paycheck Protection Program.
U.S. Bank is working through every application we have received up to this point. While we are not able to prioritize applications, we can assure you that our goal is to provide a decision for your business as soon as possible. We will keep you updated through email communication during the process.
Please note that while we will do our best to process your application quickly, we cannot guarantee that moving through this process will result in successful funding from the SBA.
Timing is dependent on your accurate completion and submission of information to U.S. Bank and volume of requests. We are continuing to partner with the SBA to improve and automate this process as quickly as possible. We will do our best to keep you posted on the progress of your application and time to fund.
We will be communicating updates on your application via email. If you have a passcode, you can also continue the application process by logging in to your account with your account ID or the passcode we sent via email.
Loan forgiveness
You, the borrower, may not be responsible for repayment of the loan if you use all the funds for forgivable expenses. Lenders will follow SBA guidance to determine the amount that is forgivable and will require an application with supporting documentation. As of Friday, May 15, the SBA has published additional guidance regarding PPP loan forgiveness.
Your loan funds can be used for:
- Payroll, including benefits, to retain employees.
- Mortgage interest payments for mortgages incurred prior to February 15, 2020.
- Rent payments on leases dated before February 15, 2020.
- Utility payments under service agreements dated before February 15, 2020.
In addition to using your loan funds on eligible expenses, follow the guidance below to maximize your potential loan forgiveness:
- Expenses must be either paid or incurred during the 8-week period that begins on the date when you received your loan funds. For purposes of payroll expenses only, borrowers with biweekly (or more frequent) payroll schedules may elect to start the 8-week period on the first day of the pay period following loan disbursement.
- At least 75% of the PPP loan proceeds should be spent on payroll expenses and no more than 25% of the loan forgiveness amount can be attributable to non-payroll expenses (e.g., mortgage interest, rent or utility payments).
- Retain existing full-time equivalent (FTE) employee levels and maintain at least 75% of existing employee compensation levels (refer to the instructions in the PPP Schedule A worksheet for additional information).
Keep track and document eligible expenses within the 8-week period. It will help with the forgiveness application process.
Review the forgiveness application form and instructions for reference from sba.gov, including a list of documentation that must be submitted.
We are currently building the process to accept forgiveness applications. You can apply for loan forgiveness after your loan has been in place for an 8-week period. This page will be updated with the most recent information.
Additional resources and education
Who can I contact for assistance?
For assistance, visit our PPP application assistance page for answers to the more frequently asked questions and further contact information. If you work directly with a U.S. Bank Business Banker, you may contact them for additional guidance.
How can I learn more about this program?
For additional information, please feel free to visit:
Subject to credit approval and program guidelines. SBA loans are subject to SBA eligibility guidelines. Certain restrictions apply to refinancing options and are subject to program terms. Refinances of existing SBA loans are excluded.
Financing maximums and terms are determined by borrower qualifications and use of funds. U.S. Bank and its representatives do not provide tax advice. Consult an advisor regarding a particular financial situation. Credit products are offered by U.S. Bank National Association.
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