FINANCE

What are PPP LOANS?

By TT

August 28, 2022

The Paycheck Protection Program (PPP) is a  business loan program established by the United States federal government in 2020

PPP established during the Donald Trump administration in 2020 through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

It is established to help some businesses, self-employed workers, business owners, some nonprofit organisations, and tribal businesses in continuing to pay their employees.

Employers can apply for low-interest private loans through the Paycheck Protection Program to cover payroll and a few other expenses.

A PPP loan's amount is roughly equivalent to 2.5 times the applicant's average monthly payroll expenses. The program is implemented by the U.S. Small Business Administration.

The PPP loan application deadline passed on March 31, 2021.