Details about the Paycheck Protection Program continue to be fleshed out by the day. We’ll continue to update this page with the best and most accurate information as soon as we receive it.
What documentation will borrowers need to show?
Depending on the organizational structure, borrowers will need to be prepared to show the following:
Who is eligible to apply?
Eligible parties include:
Alternatively, some special rules may make you eligible:
NOTE: The 500-employee threshold includes all employees: full-time, part-time, and any other status.
How much could the typical applicant borrow?
For Sole Proprietors, Independent Contractors, and Self-Employed Individuals
How much can seasonal employers borrow?
A maximum of 2.5 x Average total monthly payments for payroll costs for the 12-week period beginning February 15 and ending June 30, 2019.
How much can non-seasonal employers borrow?
A maximum of 2.5 x Average total monthly payroll costs incurred during the 2019 calendar year. For businesses not operational in 2019, a maximum of 2.5 x Average total monthly payroll costs incurred for January and February 2020.
How are payroll payments calculated?
Payroll payments are calculated by subtracting all “Excluded Payroll Costs” from the sum of all “Included Payroll Costs.”
What are “Included Payroll Costs?”
“Included Payroll Costs” are defined as follows:
What are “Excluded Payroll Costs?”
“Excluded Payroll Costs” are defined as follows:
Will these loans be forgiven?
A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:
The loan forgiveness cannot exceed the principal.
For Sole Proprietors, Independent Contractors, and Self-Employed Individuals, the amount of loan forgiveness will depend on the total amount spent over the covered period on:
Could the amount forgiven be reduced?
Yes. The amount of loan forgiveness calculated above is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.
Will the amount forgiven still be reduced if the employer brings back their employees or restores wages?
Reductions in employment or wages that occur during the period beginning on February 15, 2020, and ending 30 days after enactment of the CARES Act (as compared to February 15, 2020) shall not reduce the amount of loan forgiveness IF by June 30, 2020 the borrower eliminates the reduction in employees or reduction in wages.