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Paycheck Protection Program

lender assistance hotline (833) 572-0502

View the Rules and Application for PPP Loan Forgiveness Here

Click HERE for a useful FAQ that is being updated regularly by the SBA

Paycheck Protection Program Loan

100% guaranteed 7a loans


What funds are available?


  • $349 billion


Streamlining of Lending Criteria


  • SBA will allow lenders to rely on borrower certifications and certain documents to determine qualifying amount and loan forgiveness.

  • No personal guarantees will be required.

  • No collateral will be required.

  • No upfront guarantee fee by the borrower.


The business and each owner of 20% or more must complete the SBA application form including a certification that current economic uncertainty makes the loan request necessary to support the ongoing operations of the Application; the funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments; and that if funds are used for unauthorized purposes, the federal government may pursue criminal fraud charges.


The borrower certifies that:  The information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects. I understand that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.

When should I apply?


  • Each bank will accept applications when they are ready.  The Federal Government started the program April 3rd.  The program starts for Independent contractors April 10.

  • Applications can be submitted between now and June 20th 2020 or until funds are exhausted.


Who Is Eligible?

  • Business must be operational as of February 15, 2020 and had employees for whom it paid salaries and payroll taxes.  These employees can be furloughed or laid off and brought back to full employment for the purposes of this program. Independent Contractors cannot be included in payroll.  They can, however, apply on their own.

  • All businesses, nonprofit entities, veteran’s organization, and Tribal business concerns, so long as the borrowing entity does not have more than 500 employees (or the applicable size standard for the industry as provided by SBA).

  • Sole-proprietors, independent contractors, and other self-employed individuals.

  • Businesses with more than one physical location, so long as total combined employees are 500 employees or less. (Businesses with a NAICS code beginning with 72, Accommodation and Food services, are eligible as long as each location does not exceed 500 employees.)

  • Waives affiliation rules for businesses with 1) assigned a NAICS code beginning with 72 and do not have more than 500 employees, 2) SBA-approved franchises, and 3) small businesses that receive financing through the Small Business Investment Company (SBIC) program.

Who is ineligible?

  • Neither the business or owner can be presently suspended, debarred, proposed for debarment, declared ineligible, voluntarily excluded from participation in this transaction by any Federal department or agency, or presently involved in any bankruptcy.

  • The borrower, any of its owners, or any business owned or controlled by any of them, cannot ever have obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted in the last 7 years and caused a loss to the government

  • An owner of 20 percent or more of the equity of the applicant is incarcerated, on probation, on parole; presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of a felony within the last five years

  • All 20%+ owners must be a US Citizen or lawful permanent resident.

 How do you calculate the total loan amount?

  • For businesses operating between February 15, 2019 and June 30, 2019, the average eligible monthly payroll costs incurred during the last twelve months multiplied by 2.5 (represents months) – plus – the balance of any SBA disaster loan closed between January 31, 2020 and when this loan will be made, if applicable – OR – $10 million whichever is less. 

  • For a business not operating between February 15, 2019 and June 30, 2019, the average eligible monthly payroll costs incurred during the period between January 1, 2020 and February 29, 2020 multiplied by 2.5 (represents months) – plus – the balance of any SBA disaster loan closed between January 31, 2020 and April 3, 2020, if applicable – OR – $10 million whichever is less.

  • In the case of an eligible seasonal employer, the average number of full-time employees per month employed during the period beginning on February 15, 2019 and ending on June 30, 2019. The average eligible monthly payroll cost* multiplied by 2.5 (represents months) – plus – the balance of any SBA disaster loan closed between January 31, 2020 and April 3, 2020, if applicable – OR – $10 million whichever is less.

Payroll costs are defined as:

  • Salaries/wages/commissions, or cash 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 dismissal or separation; payments required for the provision of group health care benefits including insurance premiums; and payment of any retirement benefits;

  • Cash tips or the equivalent;

  • State/local taxes assessed on compensation of employees, and

  • 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.


What payroll costs are not allowed?

  • Any compensation of an employee whose principal place of residence is outside of the United States; 

  • 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).


What are the allowable use of proceeds?

  • Eligible payroll costs, including benefits.

  • Interest on mortgage obligations that were in place as of February 15, 2020 (excludes any prepayment of or payment of principal).

  • Rent under lease agreements in force before February 15, 2020; and

  • Utilities, for which service began before February 15, 2020.

  • Interest on any other debt obligations in place before February 15, 2020.

  • Refinancing an EIDL loan made between January 31st 2020 and April 3, 2020.

What is the interest rate and term?

  • The interest rate will be 1.00%.

  • The loan term will be two years.


What is the term of the loan?

  • Two years


When do payments start?

  • 6 months from the start of the loan, but interest will accrue from the beginning of the loan.

Is it true I won’t have to pay back my loan?

  • The borrower is eligible for loan forgiveness so long as the loan proceeds are used to cover payroll costs (as defined above), and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made (up until 6/30/2020); and employee and compensation levels are maintained.

  • Payroll costs are capped at $100,000 on an annualized basis for each employee.

  • Not more than 25% of the forgiveness amount may be for non-payroll costs.

  • Amounts forgiven may not exceed the principal amount of the loan.

  • Borrowers will verify these payments through documentation required by lenders, such as (but not limited to) IRS Payroll Expense Forms 940 and 941, mortgage statements, lease statements and utility statements.

  • Note: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.

    • 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.

    • 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.

  • Any loan amounts not forgiven at the end of one year are carried forward as an ongoing loan, due in full 2 years from the note date. The 100% loan guarantee remains intact.

Can I get both a disaster loan (EIDL) and a Paycheck Protection Program (PPP) loan?

  • SBA webinars are saying yes.  As of now, applicants can go on the SBA website and apply for an EIDL loan and a grant up to $10,000.  In addition borrowers may apply through an approved lender for a PPP loan. The new regulations states that if an EIDL loan was obtained between January 31, 2020 and April 3, 2020, this loan may be rolled into the PPP loan request. It is unclear what happens after April 3rd.  It is also unclear as to whether you have to roll any EIDL loan into the PPP loan.

What forms or documents do I need to apply for a PPP Loan?

  • In addition to the 2483 SBA PPP application form, a completed Application form from the bank that you are applying with. The form will be different for each bank.

  • Completed SBA Paycheck Protection Program Application Form (SBA Form 2483).

  • Articles of Incorporation/Organization of each borrowing entity.

  • Bylaws/Operating Agreement of each borrowing entity.

  • All owners Driver’s Licenses (front and back).

  • Certification Form executed by the recipient.

  • Payroll Expense verification documents may include, but not limited to, the following (subject to change once SBA guidelines have been released): 

    • IRS Form 940 and 941.

    • Payroll Summary Report with corresponding bank statement.

    • If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with corresponding bank statement.

    • Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.).

    • 1099s (if Independent Contractor).

    • Certification that all employees live within the United States. If any employees do not live in the Unites States, provide a detailed list with corresponding salaries of all employees outside the United States.

    • Trailing twelve-month profit and loss statement (as of the date of application) for all applicants.

  • Most recent Mortgage Statement or Rent Statement (Lease).

  • Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water).

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