Small Business Administration Paycheck Protection Program (SBA PPP)Program Information
Please review the complete SBA Borrower Fact Sheet (this link will open a PDF) as well as the SBA PPP Application for further details. The abbreviated information below is provided for convenience only and is not contractual.Basic Eligibility Information
You are eligible for a PPP loan if you have 500 or fewer employees whose principal place of residence is in the United States, or are a business that operates in a certain industry and meets the applicable SBA employee-based size standards for that industry.
Sole proprietors and independent contractors are eligible.
Nonprofit organizations specifically authorized under the CARES Act are eligible.
Your business must have been in operation on February 15, 2020.Terms
- Loan term is 2 years
- Maximum loan amount is based on 2.5 times the businesses average monthly payroll costs. See SBA guidance for complete details. The American Institute of Certified Public Accountants (AICPA) has created calculators to assist businesses with the loan amount calculation. You can access their calculators here.
- Interest rate is 1.0%
- Payments are deferred for six months
- No prepayment penalty, no loan fees
- No personal guarantee or collateral guarantee is required
- Eligible borrowers may not receive more than one PPP loan total, even if they apply at multiple financial institutions
- Payroll costs as defined by the CARES Act
- Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
- Mortgage interest payments (but not mortgage prepayments or principal payments)
- Rent payments
- Utility payments
- Interest payments on any other debt obligations that were incurred before February 15, 2020; and/or
- Refinancing an SBA Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 with certain conditions. If the EIDL loan was not used for payroll costs, it does not affect the eligibility for a PPP loan. If the EIDL loan was used for payroll costs, the PPP loan must be used to refinance the EIDL loan.
Loan Forgiveness – IT IS VERY IMPORTANT THAT YOU FULLY UNDERSTAND THIS. THIS IS AN SBA PPP LOAN AND LOAN FORGIVENESS ELIGIBILITY IS DETERMINED BY THE CARES ACT AND SBA RULES.
Any portion of the loan used over the 8 weeks after getting the loan to make payroll, pay for utilities, rent, mortgage, and existing business debt may be forgiven, dollar for dollar if workers remain employed through the end of June. The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan. However, not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.
SOLE Proprietors – no more than 8 weeks of your average weekly income will be forgiven against your loan amount. Keep this in mind as you consider how you use your loan proceeds.
Fill out an application online. For help regarding this program or the PPP Application, please contact our offices at (607) 936-2293.