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Town of Dover
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37 North Sussex Street Dover, NJ 07801
Phone: 973-366-2200
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News and Announcements

Payroll Protection Plan (English and Spanish)

Release Date: April 15, 2020






Synopsis of the program:

Payroll Protection Program-Forgivable Loans to pay employees during COVID-19

  • Starting 4/3/2020small businesses and sole proprietorships can apply
  • Starting April 10, 2020, independent contractors and self-employed individuals can apply
  • Must have less than 500 employees
  • Visit for a list of SBA lenders
  • Apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union
  • Consult with your local lender as to whether it is participating
  • Complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender
  • Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount.
  • Loans are due in 2 years with no prepayment penalties if paid off early
  • Interest rate is 1% fixed
  • Loans are deferred for 6 months with interest accruing during this time


  • You should use the proceeds from these loans on your:
  • Payroll costs, including benefits
  • Interest on mortgage obligations, incurred before February 15, 2020
  • Rent, under lease agreements in force before February 15, 2020
  • Utilities, for which service began before February 15, 2020
  • What counts as payroll costs:
  • Salary, wages, commissions, or tips
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave
  • Payments required for the provisions of group health care benefits including insurance premiums
  • Payment of any retirement benefit
  • State and local taxes assessed on compensation
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Loan Forgiveness

You can submit a request to the lender that is servicing the loan along with documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations and certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.


The Paycheck Protection Program is open until June 30, 2020.  All loan terms are the same for everyone.