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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.