COVID-19 has caused substantial economic hardship for almost every business.  The CARES Act, which became law on March 27, 2020, through its Paycheck Protection Program, also referred to as the Payroll Protection Program (“PPP”), provides significant financial help for small businesses, including businesses having not more than 500 employees, as well as sole proprietorships, independent contractors, and eligible self-employed individuals.  Gibbons | Neuman is here to assist you with the PPP application process.

The PPP can provide a loan in the amount of 2.5 times your monthly average payroll costs that can be used to pay eight weeks of payroll and certain additional expenses, such as group health benefits, sick and family leave, insurance premiums, mortgage interest, rent, utilities and other interest on debt.

PPP loans will be made under the SBA’s 7(a) program and will be made through banks and other lending institutions through a special application process.

Perhaps the most attractive features of the Paycheck Protection Program loans are:

  • Much or all of the loan can be forgiven if you follow the program guidelines; and
  • No personal guaranty or collateral is required.

On March 31, 2020, the Department of the Treasury released guidance for both banks and lenders on how to apply for and make the PPP loans.  The rules are evolving as the Treasury Department works through this massive piece of legislation requiring business owners to use their best available information for the loan.   Though there will be additional guidance in the future, banks began accepting applications as early as April 3, 2020.  It is wise to apply as early as possible.

Gibbons | Neuman can help you navigate the application process.  Please contact a member of our COVID-19 Team with your questions about the Paycheck Protection Program.


Rod B. Neuman


Elizabeth A. Allen


Jonathan S. Gilbert