|Summary||The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.|
|Who should consider applying?||Businesses with need for cash to cover payroll, mortgage interest, rent, and utilities as a result of COVID-19 crisis.|
|Highlights||– Funds spent on payroll, interest, rent, and utilities over and 8-week period will be forgiven
– Max Loan amount equal to 2.5x average monthly payroll
– 1.0% interest
– Loan payments deferred for 6 months
|Where do I apply?||Starring April 3, 2020, apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.|
|What forms and information will I need to apply?||1. Paycheck Protection Program Application Form
2. Payroll cost documentation
Joint Statement by Secretary Steven T. Mnuchin and Administrator Jovita Carranza on the Review Procedure for Paycheck Protection Program Loans PPP Interim Final Rule Distributed April 2, 2020
PPP Supplemental Interim Final Rule distributed April 14, 2020
PPP Approval Activity through April 16, 2020
PPP Interim Final Rule Distributed, April 24, 2020
PPP Interim Final Rule Additional Criterion for Seasonal Employers
Guidance on Participation Sales for PPP Loans
PPP Interim Final Rule Regarding Disbursements
PPP Interim Final Rule Distributed April 30, 2020
Guidance on Implementation of CARES Act for PPP Loans
SBA Form 3508 PPP Forgiveness Application
PPP FAQs as of May 19, 2020
New IFR published on PPP Loan Forgiveness
PPP IFR SBA Loan Review Procedures and Related Borrower and Lender Responsibilities
When can I apply?
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Where can I apply?
Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
Who can apply?
For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.
What do I need to apply?
What other documents will I need to include in my application?
Do I need to first look for other funds before applying to this program?
How long will this program last?
How many loans can I take out under this program?
What can I use these loans for?
What qualifies as payroll costs?
Is there anything that is expressly excluded from the definition of payroll costs?
– The compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary;
– Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and
– Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).
How large can my loan be?
How much of my loan will be forgiven? To calculate the exact amount of loan forgiveness, download the PPP Forgiveness Application.
To calculate the exact amount of loan forgiveness, download the PPP Forgiveness Application.
How can I request loan forgiveness?
What is my interest rate?
When do I need to start paying interest on my loan?
When is my loan due?
Can I pay my loan earlier than 2 years?
Do I need to pledge any collateral for these loans?
Do I need to personally guarantee this loan?
What do I need to certify?
– Current economic uncertainty makes the loan necessary to support your ongoing operations.
– The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
– You have not and will not receive another loan under this program.
– You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
– Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. No more than 25% of the forgiven amount may be for non-payroll costs.
– All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
– You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.