SBA Paycheck Protection Program Loans ("First Draw PPP")
The Paycheck Protection Program closed in May 2021. This information has been archived for reference only.
If you’re running a business, chances are it’s been negatively impacted by COVID-19. You needed funds to cover essential expenses and to make ends meet. You’ve heard about SBA Paycheck Protection Program (PPP) loans, but didn’t apply in the first round.
Pursuit offered an SBA PPP loan process that only a local lender could have provided. After submitting your application through our easy-to-use digital platform, you were able to access support from real people who answered your questions and processed your application efficiently. You would have also received information that helped you manage and maximize loan forgiveness.
The Paycheck Protection Program was an SBA loan program launched to help small businesses stay afloat during 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 offered.
Easy-to-use digital application
Customer support available throughout the process
What is an SBA PPP loan?
An SBA PPP loan provided small businesses struggling with the impact of COVID-19 with a forgivable loan of up to 2.5x of the business’s average monthly payroll costs. All or some of the loan can be forgiven if the business follows SBA’s PPP loan forgiveness rules.
First PPP loan details
- Loan amount: You could have borrowed 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 were not required until loan forgiveness was 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 were not required
Would I have qualified for an SBA PPP loan?
PPP was designed to help small businesses struggling because of COVID-19 related restrictions and shutdowns. If you met the following requirements, you would have been a good candidate for your first PPP loan:
- You did not previously receive a PPP loan. If you have received a PPP loan, visit our Second PPP loans page
- You had 500 or fewer employees
- A wide variety of businesses were eligible for the program. Both for-profit and certain non-profit small businesses were eligible. In addition, sole proprietorships, independent contractors, tribal businesses, and small agricultural co-ops could have obtained PPP loans
How could I have used my first PPP loan?
You could’ve used your first PPP loan to pay a variety of business expenses during the COVID-19 crisis. These expenses included:
- 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 was spent according to SBA guidelines. You can learn more about these guidelines here.
You can also view frequently asked questions about SBA PPP loans here.
The PPP loan was administered by Pursuit BDC