House Representative

White, James


Paycheck Protection Program Available to Businesses

(Austin, TX) - Congress recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This legislation is intended to assist small business owners, who have experienced significant financial losses due to the COVID-19 attack. Any small business owners who need capital to cover the cost of retaining employees, restore the vitality of their business, and grow our local prosperity should seek to apply for the Paycheck Protection Program (PPP) The PPP is a part of the CARES Act.

The program provides for cash-flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during this COVID-19 attack. Additionally, employers who maintain their current employees on payroll will have these loans forgiven. These PPP loans are available retroactively from February 15, 2020 until June 30, 2020.

Businesses do not need to visit any government institution to apply for the program. These loans are available though banks and all Small Business Administration (SBA) approved lenders can be searched online at or calling your banker.

Those who qualify may only borrow 250 percent of their average monthly payroll expenses, up to a total of $10 million. The PPP loan is meant to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations.

The purpose of the PPP is to help small businesses retain their employees, at their current base pay. If you keep all your employees, the portion of the PPP loan used for payroll and other covered expenses is forgivable. If a small business still lays off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If your total payroll expenses on workers making less than $100,000 annually decreases by more than 25%, loan forgiveness will be reduced by the same amount. If you have already laid off some employees, PPP will still forgive the full amount of your payroll cost if you rehire your employees by June 30, 2020.

"Just a few weeks ago, Southeast Texas small business men and women were experiencing the best business environment in years and boosting our local prosperity. However, COVID-19 attacked these business owners. These industrious Texans should call their banker and seek out these PPP forgivable loans to help our fellow Texans regain their jobs in order to pay rent, utilities, and all other necessities. In response to the health and safety of their communities, business owners saw their life’s labor disappear and their employees’ dignity of work erased. The eventual defeat of COVID-19 occurs when our small businesses and community non-profits revitalizes our local prosperity ," stated State Representative James White.