what is the ppp

The PPP stands for Paycheck Protection Program, which is a business loan program established by the United States federal government during the Trump administration in 2020 through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits, and the loan proceeds can also cover payroll costs, rent, interest, and utilities. The PPP allows entities to apply for low-interest private loans to pay for payroll and certain other costs, and the loan amount is approximately equal to 2.5 times the applicants average monthly payroll costs. The loan may be partially or fully forgiven if the business keeps its employee counts and employee wages stable. The PPP has been updated multiple times since its initial introduction in the CARES Act in March 2020, and it ended on May 31, 2021. However, certain businesses are still eligible for a Second Draw PPP loan, and existing borrowers may be eligible for PPP loan forgiveness.