COVID-19 Loan & Grant Programs - Paycheck Protection

Paycheck Protection Program

Update: On January 11, 2021 the Small Business Administration (SBA) announced the reopening of the Paycheck Protection Program loan program. Read the full eligibility criteria in the AAOS Paycheck Protection Program FAQ below.

The Paycheck Protection Program (PPP) was created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It is designed to incentivize businesses to keep their employees on payroll throughout the early and subsequent months of COVID-19, as well as help affected small businesses and our economy recover after the crisis. The program provides cash-flow assistance through 100% federally guaranteed loans which will be forgiven if employers maintain their payroll during this emergency.


  • Allows you to apply for a 100% government backed, low interest SBA 7(a) loan up to $10 million. The loan amount will equal 250% of your average monthly payroll costs.
  • The period covered for the debt forgiveness begins February 15, 2020.
  • The 100% government backed loans application will be open until March 31, 2021.
  • Allows you to use the loan to cover payroll costs, including salaries, paid sick and medical leave, insurance premiums, mortgage, rent, utility payments, interest payments on other debt obligations incurred prior to February 15, 2020 and/or refinancing an SBA Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020. 
  • Delegates authority to all current 7(a) lenders to determine your eligibility.
  • Prevents you from accessing both this and an SBA disaster relief loan for the same purpose.


  • Small business concerns, as well as any business concern, a 501(c)(3) nonprofit organization, a 501(c)(19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
  • Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
  • Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived.
  • Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration, and company that receives funding through a Small Business Investment Company.
  • Allows current PPP Loan recipients to apply for a second, forgivable loan of up to $2 million.


For additional information, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or

The SBA also provides local assistance via 68 district offices and a nationwide network of resource partners. Find resources near you

Loan Program Quick Guide

This at-a-glance resource will help you determine the type of financial relief that is right for your practice.

Legal and Financial Disclaimer: The information on this page is meant to serve as an educational summary of federal loan and grant programs related to COVID-19. It does not constitute or substitute legal or financial advice. Interested parties should continue to consult their legal and financial professionals.

Note about AAOS Help and Services: Unfortunately, the Academy is unable to help with individual applications or paperwork required for obtaining relief funds. For related questions or comments about the programs, please email the Office of Government Relations at