SBA Paycheck Protection Program (PPP)

As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $484 billion aid package signed on April 24, 2020 and the Paycheck Protection Flexibility Act sign June 5, 2020—the Paycheck Protection Program (PPP) provided $659 billion of loan funds to support small businesses, nonprofit organizations, and other eligible entities impacted by COVID-19.

Via the Consolidated Appropriations Act, 2021, the Paycheck Protection Program (PPP) has been provided with an additional $284 billion of loan funds to support small businesses and other eligible entities impacted by the COVID-19 pandemic

Loans of up to $10 million for first time PPP borrowers and second draw loans of up to $2 million for previous PPP borrowers will be available to cover eligible expenses including funds to pay workers, interest on mortgage obligations, rent, insurance, paid sick or medical leave, utilities, and payroll- related costs incurred from during the borrowers chosen covered period. 

Loans will be available from participating lenders starting Monday January 11, 2021 for first time borrowers and Wednesday January 13, 2021 for second draw borrowers. Please see below for overview and instructional documents with details on how to apply.

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Highlights of this program include:

  • Paycheck Protection Program loans may be partially or fully forgiven and are 100% federally guaranteed.
  • There are no collateral requirements or personal guarantees for the loans.
  • There are no fees for borrowers to apply, and no prepayment fees.
  • Borrowers can apply for a loan of up to a maximum of $10 million ($2 million for second draw borrowers) from participating lenders.
  • Loan amounts will be based on previously documented payroll and other covered business costs.
  • Covered costs include payroll/employee compensation, continuation of health care benefits, utilities, commercial rent and mortgage interest.
  • Loans are 100% federally guaranteed with interest capped at 1% per annum, with a 2-year term for loans made before 6/5/2020 or a 5 year term for loans made after 6/5/2020 (per lender).
  • Loan repayments are deferred until the forgivable cost calculations are accepted by the lender and the SBA.
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Eligible Businesses

  • A small business with less than 500 employees for first time borrowers (or a business in an industry that has an employee-based size standard through SBA that is higher than 500 employees); or
  • A small business with less than 300 employees for second draw borrowers;
  • 501(c)(3) nonprofit with less than 500 (300 for second draw) employees; or
  • 501(c)(6) nonprofit with less than 300 employees; or
  • 501(c)(19) veteran’s organization with less than 500 (300 for second draw )employees; or
  • Tribal business concern described in section 31(b)(2)(C) of the Small Business Act with less than 500 (300 for second draw) employees; or
  • A restaurant, hotel, or a business that falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and Food Services,” and each of the locations has less than 500 employees; or
  • Businesses in the hospitality and restaurant industries, franchises that are approved on the SBA’s Franchise Directory; or 
  • Businesses with financial assistance from Small Business Investment Company (SBIC) program; or
  • Sole-proprietors, independent contractors, and other self-employed individuals.


The SBA generally defines a small business as an entity with 500 employees or less. There are, however, specific size standards depending on the type of business. You can look up the standards for your specific business by NAICS code here.

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How to Apply

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Organizations Available to Assist

New York's statewide community network of Small Business Development Centers, Entrepreneurship Assistance Centers and Community Development Financial Institutions are available to help guide your business through the SBA loan application process. Business leaders, lawyers and nonprofit professionals have also volunteered to offer loan application guidance.

NY Small Business Development Centers (SBDC): The New York Small Business Development Center (NYSBDC) provides small business owners and entrepreneurs in New York with the highest quality, confidential business counseling, training, and business research at no cost.

Entrepreneurship Assistance Centers (EAC) Contact List: Entrepreneurship Assistance Centers (EAC) provide instruction, training, technical assistance and support services to new and aspiring entrepreneurs in local communities statewide.

Community Development Financial Institution (CDFI) Contact List: CDFIs are local financial service providers with locations throughout New York State, and often are the sole provider of banking and other financial services in communities that are not served by traditional banks and financial institutions.

New York Council of Nonprofits: Empire State Development has partnered with the New York Council of Nonprofits to provide free Paycheck Protection Program and Emergency Injury Disaster Loan consulting and support to all 501(c)3 nonprofits in New York state. An email hotline and individual consultations are available.