• Small Businesses with less than 500 employees. (Note: this includes full time, part time and any other status)
• A 501(c)(3) with fewer than 500 employees.
• Individuals who operate as a Sole Proprietorship or Independent Contractor.
• An Individual who is self-employed who regularly conducts business.
• A Tribal Business concern that meets Small Business Administration (SBA) size standards.
• A 501(c)(19) Veterans Organization that meets SBA Size Standard.

Exceptions

• If your business is in the accommodation and food services sector (NAICS 72), the 500 employee rule is applied on a per physical location basis.
• If you are operating a franchise, or receive financial assistance from an approved Small Business Investment Company, the normal affiliation rules do not apply.

• Loans can be up to 2.5x your average monthly Payroll Costs during the year prior to the loan date up to $10 million.
• Excluded from Payroll Costs are: Payroll Taxes, Railroad Retirement Taxes, Income Taxes, Compensation of employees who reside outside of the U.S., as well as the compensation of an individual employee in excess of a $100,000 annual salary.
• For Business Not Operational in 2019: 2.5 x Average total monthly payroll costs incurred for January and February 2020.
• For Seasonal Employers: 2.5x the Average total monthly payments for payroll costs for the 12 – week period beginning February 15th, 2019 (or March 1st, 2019 - as decided by the loan recipient and ending June 30th, 2019.)

• salary, wage, commission, or similar compensation, but not to exceed more than $100,000 for each employee in one year,
• payment of cash tip or equivalent,
• payment for vacation, parental, family, medical, or sick leave,
• allowance for dismissal or separation,
• group health care benefits, including insurance premiums,
• payment of any retirement benefit,
• payment of state or local tax assessed on the compensation of the employee, and
• payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in one year, as pro-rated for the covered period.

• Only ONE loan can be taken out under the Paycheck Protection Program or Economic Injury Disaster Loan Assistance.
• 75% of loan proceeds must have been used for payroll
• An interest rate 1% with a 2 year repayment term (for amounts not forgiven).
• A statement certifying that the uncertainty of current economic conditions makes the loan request necessary to support ongoing operations of the business.
• You intend to use the money to:
  • Retain workers,
  • Maintain payroll (e.g. wages, commissions, retirement benefits, healthcare benefits, paid leave, etc.)
  • Make mortgage or lease payments
  • Make utility payments
• You were in business before February 15, 2020, with paid employees and payroll taxes or paid independent contractors.

Note: You do not need collateral or a personal guarantee.

• The current economic uncertainty makes the loan necessary to support your ongoing operations.
• The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
• You have not, and will not, receive another loan under this program.
• You will need to provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
• Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
• All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.

• A Borrower is eligible for loan forgiveness equal to the amount spent on the following items during the 8-week period beginning on the date of the origination of the loan:
  • Payroll Costs,
  • Interest on the mortgage obligation incurred in the ordinary course of business,
  • Rent on a leasing agreement,
  • Payments on utilities,
  • For borrowers with tipped employees additional wages paid to those employees.
• The forgiveness will be reduced if there is a decrease in the number of employees or a reduction in wages paid to employees greater than 25%.
• Reductions in employment or wages that happen during the period beginning February 15, 2020 and ending 30 days after enactment of the CARES Act WILL NOT reduce the amount of loan forgiveness IF by June 30, 2020, the reduction in employees or wages is eliminated

• Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
• Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
• Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.

• You should consult with your local lender as to whether it is participating.
• Any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
• Visit www.sba.gov for a list of SBA lenders.