Businesses may begin applying as soon as April 3, 2020 for the Paycheck Protection Program

The Paycheck Protection Program is a loan program designed to provide a direct incentive for small businesses (Less than 500 employees) to keep their workers on the payroll. Contact your local lender to confirm that they are a participating institution and to apply. Participating lenders include: any federally insured depository institution (FDIC), federally insured credit union, and Farm Credit System institution, or any existing SBA 7(a) lender. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Lenders may begin processing loan applications as soon as April 3, 2020.

Loan Terms & Conditions

• The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off
employees through June 30, 2020.
• Eligible businesses: All small businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries.
• Maximum loan amount up to $10 million.
• The loan will be fully forgiven if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small business fees. 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.
• All loans under this program will have the following identical features:
o Interest rate of 0.5%
o Maturity of 2 years
o First payment deferred for six months
o 100% guarantee by SBA
o No collateral
o No personal guarantees
o No borrower or lender fees payable to SBA

The SBA and Treasury Department have been working all week to design and roll out the Paycheck Protection Program as established by the Coronavirus Aid, Relief, and Economic Securities (CARES) Act signed into law last Friday, March 27, 2020.

If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.

Visit for more information on the Paycheck Protection Program and other SBA Coronavirus (COVID-19) Small Business Guidance & Loan Resources.

Paycheck Protection Program
Economic Injury Disaster Loans and Loan Advance
SBA Debt Relief
SBA Express Bridge Loans
Guidance for Businesses and Employers
SBA Products and Resources
Government Contracting
Local Assistance

Please check the website for updates to these programs as programs and requirements continue to evolve rapidly during these unprecedented times.

In response to the rapidly evolving public health emergency of COVID-19 (Coronavirus), KCEDC has compiled a list of resources. We hope these resources will be of assistance to you as you navigate these turbulent times and the operation of your business. As we learn of additional resources, we will add them to this page, and send email blasts to our contact lists. Please encourage members of your team and other interested people to sign up for these KCEDC newsletters here and to check this page often for updates.