What other documents will I need to include in my application?You will need to provide payroll documentation.
Do I need to first look for other funds before applying to this program?No. The SBA is waiving the usual requirement that you try to obtain some or all of the loan funds from other sources (i.e., they are waiving the Credit Elsewhere requirement).
How long will this program last?Although the program is open, we encourage you to apply as quickly as you can because there is a funding cap and we need time to process your loan.
How many loans can I take out under this program?Only one.
What can I use these loans for?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; and Utilities, for which service began before February 15, 2020.
What counts as payroll costs?Payroll costs include:Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;State and local taxes assessed on compensation; andFor 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
Does the PPP cover paid sick leave?Yes, the PPP covers payroll costs, which include employee benefits such as costs for parental, family, medical, or sick leave. However, it is worth noting that the CARES Act expressly excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127).
How large can my loan be?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. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
How much of my loan will be forgiven?You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.You will also owe money if you do not maintain your staff and payroll.
Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020 How can I request loan forgiveness?You can submit a request to the lender that is servicing the loan. The request will include 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. You must 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.
When do I need to start paying interest on my loan?All payments are deferred for 6 months; however, interest will continue to accrue over this period.
When is my loan due?In 2 years.
Can I pay my loan earlier than 2 years?Yes. There are no prepayment penalties or fees.
Do I need to pledge any collateral for these loans?No. No collateral is required.
Do I need to personally guarantee this loan?No. There is no personal guarantee requirement.