First Paycheck Protection Program Loans ("First Draw PPP")
A COVID-19 disaster relief program designed to provide businesses with the funds needed to pay rent, employees and other essential costs
If you’re running a business, chances are it’s been negatively impacted by COVID-19. You need funds to cover essential expenses and continue to make ends meet. You’ve heard about the Paycheck Protection Program (PPP), but didn’t apply in the first round.
At Pursuit, you’ll find a PPP process that only a local lender can provide. After submitting your application through our easy-to-use digital platform, you can access support from real people who will answer your questions and process your application efficiently. You’ll also receive information that will help you manage and maximize loan forgiveness.
The Paycheck Protection Program is an SBA loan program launched to help small businesses stay afloat during ongoing COVID-19 related closures and restrictions. Your PPP loan can be forgiven, meaning that all or some of it will not need to be repaid depending on how it is spent. Learn more about what the program can offer you.
Easy-to-use digital application
Customer support available throughout the process
First PPP loan details
- Loan amount: You can borrow up to 2.5x your business’s average monthly payroll costs
- Interest rate: 1%, fixed for the life of the loan
- Term: 5-year term; payments are not required until loan forgiveness
has been determined
- Fees: No fees
- Loan forgiveness: All or a portion of the loan may be forgiven if the business complies with rules regarding usage of the fund
- Collateral: Collateral or personal guarantees are not required
Will I qualify for a first PPP loan?
PPP is designed to help small businesses struggling because of COVID-19 related restrictions and shutdowns. If you meet the following requirements, you’re a good candidate for your first PPP loan:
- You have not previously received a PPP loan. If you have received a PPP loan, visit our Second PPP loans page
- You must have 500 or fewer employees
- A wide variety of businesses are eligible for the program. Both for-profit and certain non-profit small businesses are eligible. In addition, sole proprietorships, independent contractors, tribal businesses, and small agricultural co-ops can obtain PPP loans
How can I use my first PPP loan?
You can use your first PPP loan to pay a variety of business expenses during the COVID-19 crisis. These expenses include:
- Salaries, wages, payroll, independent contractors (1099), benefits, etc.
- Rent & utilities
- Interest on mortgages and other loans
- Refinance of an SBA Economic Injury Disaster Loan (EIDL) made between January 1, 2020 and April 3, 2020
Payment for any software, cloud computing, and other human resources and accounting needs
Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance
Payments to a supplier pursuant to a contract, purchase order, or order for goods that were in effect prior to receiving the PPP loan that are essential to your operations when the payments were made. Supplier costs for perishable goods can be made before or during the life of the loan
Personal protective equipment and costs that you incurred to help your business comply with Federal, State, or local requirements beginning on March 1, 2020
If your goal is to get all or most of your loan forgiven, you will need to ensure that the money is spent according to SBA guidelines. You can learn more about these guidelines here.
How can I apply for a PPP loan through Pursuit?
You can start your Paycheck Protection Program application and view helpful application resources on our PPP Application Information Hub.
The PPP loan is administered by Pursuit BDC