Paycheck Protection Program

E821927

The Paycheck Protection Program was a U.S. federal loan initiative created during the COVID-19 pandemic to help small businesses keep workers employed by providing forgivable loans for payroll and certain other expenses.

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Statements (50)

Predicate Object
instanceOf COVID-19 pandemic relief program
United States federal loan program
administeredBy U.S. Small Business Administration NERFINISHED
alsoKnownAs PPP NERFINISHED
complianceRequirement documentation of payroll and eligible expenses for forgiveness
controversy fraudulent loan applications and misuse of funds
loans to large or publicly traded companies
uneven access for very small and minority-owned businesses
country United States of America
surface form: United States
createdByStatute CARES Act NERFINISHED
Coronavirus Aid, Relief, and Economic Security Act NERFINISHED
eligibilityCriterion businesses generally with 500 or fewer employees
demonstrated impact from COVID-19 pandemic
endOfNewLoans 2021-05
firstRoundFundingDepletion 2020-04 GENERATED
fundingSource federal appropriations under CARES Act and subsequent legislation
historicalSignificance one of the largest small-business relief programs in U.S. history
implementedDuring COVID-19 pandemic
implementedThrough banks and credit unions
participating private lenders
inception 2020-03
legalForm federally guaranteed loan program
legislativeBody United States Congress
loanFeature interest rate capped by statute
loan forgiveness available if funds used for eligible expenses
loans are 100 percent federally guaranteed
no collateral required
no personal guarantee required
loanUseRestriction at least a specified percentage of funds must be used for payroll costs to qualify for full forgiveness
notableAmendment Paycheck Protection Program Flexibility Act of 2020 NERFINISHED
notableAmendmentEffect adjusted payroll cost percentage required for forgiveness
extended covered period for use of funds
extended loan maturity for new loans
oversightBy U.S. Department of the Treasury NERFINISHED
purpose to cover certain non-payroll expenses such as rent, utilities, and mortgage interest
to help small businesses maintain payroll during the COVID-19 pandemic
to provide forgivable loans for payroll costs
regulator U.S. Small Business Administration NERFINISHED
relatedEvent United States economic response to the COVID-19 pandemic NERFINISHED
relatedProgram Economic Injury Disaster Loan program NERFINISHED
Restaurant Revitalization Fund NERFINISHED
sector small business finance
signedIntoLawBy Donald Trump NERFINISHED
subsequentFundingLegislation Consolidated Appropriations Act, 2021 NERFINISHED
Paycheck Protection Program and Health Care Enhancement Act NERFINISHED
targetPopulation eligible nonprofits
independent contractors
self-employed individuals
small businesses
totalAuthorizedFunding hundreds of billions of U.S. dollars

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