Paycheck Protection Program (PPP)

How To Save Your Health Benefits Through The PPP

The recently passed Coronavirus Aid, Relief and Economic Security (CARES) Act provides $350 Billion in direct stimulus for small businesses impacted by COVID-19. Through the Small Business Administration (SBA) bankers will have access to these funds through the recently created Paycheck Protection Program. This program provides much needed cash for businesses to maintain payroll and save their group health benefits. Here are the highlights of this new program:

Loan Details

  • Loan amount – 2.5X monthly payroll
  • Can be used to cover payroll, Health Insurance, rent/lease, utilities
  • At least 75% of the forgiven amount must be used for payroll
  • Loan payments deferred for 6 months
  • No collateral required and no fees will be applied
  • The loan has a maturity of 2 years and a 1% interest rate


  • The 2.5X monthly payroll loans will be fully forgiven when used for payroll costs, rent, utilities, and health insurance.
  • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
  • Forgiveness will be reduced if full-time headcount declines or if salaries and wages decrease.

Lenders will begin processing these loan applications on April 3, 2020. It highly recommended that you are well prepared. Download the application from the SBA’s website and prepare your documents early. Contact your business banker for program details and begin the process.

Author: Deric Fernandez. For more information, contact your Benefit Pro Advisor.