Relief for Small Business under the Paycheck Protection Program


The Coronavirus Aid, Relief, and Economic Security (CARES) Act (the “Act”) was signed into law on March 27, 2020. The Act established the Paycheck Protection Program which “is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses”.[1] Under certain conditions, up to 100 percent of the loan is forgivable if the proceeds of the loan are used for qualified expenses like payroll and rent.

Qualifying Businesses:

  • a business which has suffered substantial economic injury as a result of the COVID-19 pandemic and is unable meet its financial obligations, pay ordinary and necessary operating expenses, and market, produce, or provide a service or product ordinarily provided by the business
  • < 500 employees (Businesses with > 500 employees in certain industries may also qualify

Loan Amount:

  • 2.5 times the monthly average of the business’ payroll and payroll related expenses (taxes, matching contributions, health insurance, etc.) for the immediately preceding 12 months

Example:$120,000 payroll and payroll expense/ 12 = $10,000.00/month

$10,000 x 2.5 = $25,000.00 Loan Amount (up to 10,000,000 Max)

Qualifying Expenses:

  • The loan proceeds may be used for the payment of certain business expenses, including the following qualified expenses:

Payroll, payroll taxes, rent, utilities, interest and other items

  • Only qualifying expenses may be eligible for forgiveness

Where to Apply:

  • The loan will be processed and serviced by private lenders approved by the Small Business Administration
  • You cannot make application for a PPP loan directly on the SBA website. Do not confuse the PPP loan with other SBA loans which you can apply for on the SBA website
  • PPP loans will be available until 6-30-2020


  • Restrictions and eligibility requirements apply


Contact George P. Georgaklis, Esq. 718-238-2400, ext 203