COVID-19 Paycheck Protection Program

Summary

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), passed in March of 2020, created the Paycheck Protection Program (PPP) to offer much-needed support for small businesses, including many electric cooperatives. Newly enacted legislation provides additional funding and flexibility for PPP loans and a new PPP Second Draw Loan program.

PPP loan recipients will now be able to use funds for additional expenses, including certain operations expenditures, supplier costs, and worker protection expenditures; include additional group insurance payments in calculating PPP payroll costs; and reapply, as needed, for the new maximum amount applicable. The PPP Second Draw Loan program would allow eligible businesses – including electric cooperatives – with no more than 300 employees and a 25 percent reduction in gross revenues to receive a second, forgivable loan of up to $2 million.

Fact Sheet