COVID-19 resources & funding

Paycheck Protection Program

Whether you’re a sole proprietor, self-employed, a small business owner with employees, or an independent contractor, the Paycheck Protection Program (PPP) offers low-interest loans that may be 100% forgiven.

We’re now rolling out PPP loan applications. Here’s your guide to help you prepare and gather information and documents you’ll need to apply. If you’ve already applied elsewhere but have not received funding, you can apply again with Square if you receive an invite.

Paycheck Protection Program and Square Capital at a glance

1% fixed interest rate

Fixed annual interest rate

Up to $2 million

Get up to 2.5x or 250% of your average monthly payroll expenses (or average monthly income for non-employers) + EIDL loan (net of advance)

24-month term loan

2-year max term of repayment

6-month payment deferment

All loan payments are deferred for 6 months, but interest will accrue during this time

Qualifying businesses

Sole proprietors, independent contractors, self-employed persons, and small businesses with fewer than 500 employees in operation since February 15, 2020

100% forgiveness

You can apply for full or partial loan forgiveness.*
Full forgiveness can be approved if:

  • Entire loan is used toward qualifying costs
  • At least 75% of the loan is used for qualifying payroll costs
  • And you either don’t lay off employees, or if you rehire employees by June 30, 2020

*Please note, in order to apply for loan forgiveness, you’ll need to document how you use the loan. Loan forgiveness does not happen automatically. See our FAQ for more info on the application process.

How can these funds be used?

  • Payroll costs (salary, wages, commission, tips)

  • Employee benefits (healthcare benefits, vacation, and more)

  • Mortgage interest payments (not including payments on the mortgage principal)

  • Rent

  • Utilities

  • Interest on any other debt obligations that took place before February 15, 2020

Loans used to cover these costs will be 100% forgiven if at least 75% of the loan is used toward qualifying payroll costs and the rest of the loan is used toward the other uses listed here. If funds go toward any non-covered expenses, then that portion will not be forgiven. More info >

Start preparing to apply

Preparing your 2019 taxes or getting a payroll report from your payroll provider (if you have one) are the best things you can do ahead of time.

If you don’t have employees, you’ll need to have a prepared 2019 1040 Schedule C form to upload (your taxes don’t have to be filed yet). Whether you apply through Square Capital or with another lender, you’ll need the same documents and information.

Please note:

Make sure any numbers you enter in the application match your supporting documents exactly. It’s also important to upload the exact documents required during the application process. Incorrect documents could result in a delay of your application. For the most up-to-date requirements, visit the SBA website.

Determine if you are an employer or non-employer

You are an employer if you filed a W2 for at least one employee including yourself. You are a non-employer if your business didn’t file a W-2 for any employee including yourself.

Calculate your average monthly payroll or income

If you’re an employer, it’s payroll. Non-employers will calculate income.

Organize business and personal information

You’ll need things like your government ID, SSN, and EIN to complete the application.

Verify your business was operational on February 15, 2020

The PPP does not apply to businesses started after this date.

Confirm if you had employees on February 15, 2020

If you don’t employ anyone, your requirements will be different. Either way, the SBA needs to see documentation.

If you’ve applied for Economic Injury Disaster Loan (EIDL)

Businesses that have applied or been approved for an Economic Injury Disaster Loan (EIDL) between January 31, 2020 and April 3, 2020 will also need to provide the outstanding EIDL amount by taking the total balance and subtracting the forgivable “advance” portion.

What to expect from Square Capital

We’ve designed an easy, intuitive application experience:

  1. We’ll reach out via email and your Square Dashboard if you’re eligible to apply. Then you can complete the PPP loan application on your Square Dashboard.

  2. Applications will then be reviewed by Square Capital. Next, the Small Business Administration (SBA) reviews applications on their own timeline.

  3. If your application is approved by the SBA, funds will then be deposited into your linked bank account in 1 to 10 calendar days after SBA approval.

Frequently asked questions

  • What’s the deadline to apply?

    The current deadline to submit PPP applications is June 30, 2020 or as soon as the funds run out—we’ll provide updates if this changes. Please keep in mind, the first round of PPP funding ran out in just 14 days, so we encourage you to apply as soon as possible.

  • Can I apply for a PPP loan with more than one lender?

    You can apply with more than one lender for a PPP loan, but you can only be approved for one PPP loan during the PPP program. All PPP lenders will work with the SBA to ensure this, which means if you have been approved for a PPP loan through one lender, all other PPP applications with other lenders will be declined.

  • How is my PPP loan amount calculated?

    The SBA has issued specific instructions for how all PPP lenders must calculate the loan amount. The PPP loan amount = average monthly payroll (excluding payroll costs over $100,000) x 2.5 + EIDL loan (net of advance). See here for more info on how to calculate your average monthly payroll.

  • Can my PPP loan be forgiven in whole or in part?

    Yes. PPP loans (the full principal amount and any accrued interest) may be forgiven, meaning they don’t have to be repaid if you meet certain requirements. If you don’t apply for forgiveness, you’ll have to repay the loan. See here for more details.

  • How long does the PPP application review process take?

    We will work to process your application as fast as we can. Processing times can depend on PPP application volume, internal SBA systems, and the completeness of all documentation you submit to support your loan application. We will notify you through email and your Square Dashboard once a credit decision has been made.

Need more details? See our full PPP FAQ >

Square, the Square logo, Square Capital, and others are trademarks of Square, Inc. and/or Square Capital, LLC. Square Capital, LLC is a wholly owned subsidiary of Square, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY.

All loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank. Member FDIC, located in Salt Lake City, UT. The individual authorized to act on behalf of the business must be a U.S. citizen or permanent resident and at least 18 years old. Valid U.S. bank account and Social Security number or Individual Taxpayer Identification Number are required. Eligibility for the Payment Protection Program or any other loan product is not guaranteed. All loans, if offered, will be subject to approval and qualification under the program standards.