The amount of loan forgiveness will include payroll costs for individuals below $100,000 in annual income, mortgage and rent obligations including interest and utility payments. The total amount will be reduced if your workforce is drawn down through attrition, or if wages are reduced. If you are forced to lay off employees because of economic conditions, you may be able to preserve some of your loan guarantee by hiring them back.

Eligibility for loan forgiveness starts eight weeks after the loan origination date. There is a maximum 10-year maturity after application for loan forgiveness.

Q: What’s the interest rate?

The maximum interest rate for the Paycheck Protection Program is 4 percent.

Q: It looks like there are a lot of different federal loan programs. Can my business receive funding through more than one?

Yes. Businesses that have pending or existing SBA disaster assistance loans can still receive funding through the Paycheck Protection Program as long as the loans are being applied to different cost centers. You also can still apply for a loan if you have an insurance claim pending.

Q: What do these loans cover?

Loans through the Paycheck Protection Program can cover payroll costs, mortgage and rent payments, health care benefits for employees including paid sick leave. In some cases it also can cover interest on other debts.

Q: What if I’m still paying off a different SBA disaster loan?

The Small Business Administration has made all deferments through Dec. 31 automatic. That means small business owners do not have to contact the SBA to request deferment.

Q: This article did not answer my question. How can I find more information?


Your primary points of contact for information on federal loan programs should be the U.S. Small Business Administration or an SBA-qualified financial institution. You can reach the SBA by email at answersdesk@sba.gov or by phone at 1-800-827-5722. The agency has reported receiving “unprecedented” interest in its loan program in recent weeks but is working to set up new call centers to handle the flood of new inquiries.

Several business groups also have published fact sheets on the SBA’s loan programs, including the Economic Innovation Group and the U.S. Chamber of Commerce.