Paycheck Protection Program
Paycheck Protection Program
*CARES Act is currently in legislation; will update details as information is provided
Loans available up to $10 million.
Loan amount is calculated at 2.5 times average payroll expenses over a
12-month period.
Loan interest rates capped at 4%.Maximum loan term of up to 10 years (term is determined on a case-by-case basis).
Must have applicable credit history.
Must show ability to repay loan.
Note: CARES Act deferment of payment is automatically 6 months and up to 1 year.Loan forgiveness is determined as the cost of maintaining payroll from
3/1/20 - 6/30/20.*See qualifications for loan forgiveness below.
Businesses who receive Paycheck Protection Program loans to cover employee salaries, payroll support, mortgage or other debt obligations cannot also receive EIDL loans for the same purpose.
Current financial information (income, balances of bank/credit accounts and monthly expenses).
Forms required:
Form 5 - Business Loan Application
P-019 - Economic Injury Disaster Loan Supporting Information
SBA Form 413 - Personal Financial Statement
Form 4506-T - For business, personal and any related businesses
(e.g., real estate partnership)SBA form 2202 - Schedule of Liabilities
Additional information may be requested. Applicants have 7 days to respond to additional requests
Qualifications for loan forgiveness:
Not for employees currently getting FFCRA sick or leave pay.
Employees with annual salaries of $100k or more in 2019 are excluded from forgiveness.
Loan forgiveness can be reduced (not increased) by the following formula: # of FTE equivalents during period / # of FTE equivalents from January 1, 2020 to February 29, 2020.
Special calculations for seasonal employers.
Loan will be reduced also by any wages for an employee whose pay is now more than 25% higher than it was prior to the loan.
Loan forgiveness is also reduced for any employee that in 2019 had an annualized salary of $100k or more.
If a loan is made, any officer whose total compensation (salary, bonus, stock or financial awards) is $425,000 or more in 2019 (unless in a collective bargaining agreement prior to 3/1/2020) cannot receive compensation more than the total compensation received in 2019.