Payroll Protection Program


Note: The implementation of COVID-19 relief programs is a fluid situation with new details released daily. We strive to keep this information as up-to-date as possible and will highlight important changes you should be aware of.

The SBA’s Paycheck Protection Program is now open to Pennsylvania small businesses! The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The Paycheck Protection Program will be available through June 30, 2020.

Updates as of 4/25/2020

  • Congress has appropriated an additional $376 billion to refund and restart small business disaster and relief loan programs

  • There is now an additional $320 billion for the PPP, which incentivizes businesses to keep their workers on payroll

  • SBA will resume accepting applications from participating lenders on Monday, April 27th at 10:30 am EDT

  • If you already applied, check with your lender on the status

  • If you have not applied, check with your existing lender about their PPP participation and application availability

  • We strongly encourage all businesses to review lending criteria so you can apply as soon as lenders begin processing applications


This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.

Loan Amount:

The lesser of: 250% of the average total monthly payments by the applicant for payroll costs incurred during the 1-year period before the date on which the loan is made; and $10,000,000. The amount of “Payroll related costs” is defined as the sum of payments of any compensation with respect to employees that is a salary, wage, commission, tip, vacation, parental, family, medical leave, sick leave, allowance for dismissal or separation, group health care benefits, retirement benefits and state or local taxes. The PPP loan has a 1.00% fixed rate. Loan payments will be deferred for 6 months.



You should use the proceeds from these loans on your:

  • Payroll costs, including benefits;

  • Interest on mortgage obligations, incurred before February 15, 2020;

  • Rent, under lease agreements in force before February 15, 2020; and

  • Utilities, for which service began before February 15, 2020.

What counts as payroll costs?

Payroll costs include:

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);

  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;

  • State and local taxes assessed on compensation; and

  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Does the PPP cover paid sick leave?

Yes, the PPP covers payroll costs, which include employee benefits such as costs for parental, family, medical, or sick leave. However, it is worth noting that the CARES Act expressly excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127). Learn more about the FFCRA’s Paid Sick Leave Refundable Credit online.


The loan amounts will be forgiven as long as:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and

  • Employee and compensation levels are maintained


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. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

How to Apply:

Paycheck Protection Program loans are only available through your local SBA certified bank or credit union.

  1. Start by calling your existing bank or credit union to see if they’re participating.

  2. Use this online search tool to find a nearby lender eligible to issue a loan under the PPP.

  3. If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you.

  4. You will need to provide your lender with payroll documentation.

Need more details? Contact us

We are here to assist. Contact us by phone, email or via our social media channels.

  • Facebook - Grey Circle
  • Twitter - Grey Circle

WIDENER UNIVERSITY SBDC · Leslie C. Quick Center, 1304 Walnut Street, Chester, PA 19013 · 610.499.4109

SEPTAC logo.jpg

© 2020 Widener University Small Business Development Centers. All Rights Reserved