All businesses as defined by the SBA in section 3 of the Small Business Act(15 USC 632), and subject to SBA’s affiliation rules under 13 CFR 121.301(f) unless specifically waived in the Act; – It has been broadened to include; nonprofits, veterans’ organizations, Tribal business concerns,sole proprietorship, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee based. size standards for those industries (click here for additional detail).

The CARES Act has expanded the eligibility criteria for borrowers to qualify for a Paycheck Protection Program loan. Any qualified small business, nonprofit organization, veterans’ organization, or tribal business is eligible to review a loan if the business employs 500 or fewer people.

Loans can be for up to 2.5 times your average monthly Payroll Costs plus any EIDL loans made between January 31, 2020 and April 3, 2020. Payroll Cost is defined as:

1. wages to employees when annualized is a $100,000 or less whose principal place of residency is in the U.S. including severance, sick and parent leaves,
2. Cash tips or the equivalent,
3. Payments for vacations, parental, family medical, or sick leave,
4. Allowance for separation or dismissal,
5. Health benefits paid on behalf of employees for group health insurance,
6. Retirement benefits paid on behalf of employees,
7. Sate and Local taxes paid on wages (unemployment taxes)
8. For active partners in an LLC or similar partnerships, the earnings which on a prorated basis does not exceed $100,000,
9. Less: sick and family leave wages for which credits were allowed under the Families First Coronavirus Response Act.
The total loan 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.

The loan may only be used for:

1. Payroll costs as defined above including payments to active partners in a partnership,
2. Mortgage interest payments (but not prepayment or payment of mortgage principal)
3. Commercial space rent and utilities
4. Interest on any other debt obligations incurred before February 15, 2020 and
5. Refinancing of an SBA EIDL loan made between January 31, 2020 and April 3, 2020. If you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan. If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan.

• You may be eligible to have all or a portion the loan principal forgiven if you use the funds over an 8 week period for the uses as outlined above. You will have to provide documentation to support your claim for forgiveness.
• Compensation to employees and earnings of active partners in a partnership are capped at $100,000 on an annualized basis for each employee and partner.
• Compensation to employees and earnings of active partners in a partnership are capped at $100,000 on an annualized basis for each employee and partner.
• Non-payroll costs will be limited to 25% of the forgiveness amount.
• Forgiveness will be reduced if the number of employees during the eight-week period fall below that employed during the pay period ending February 15, 2020 and if employees’ salaries have been reduced by more than 25%.

• The date you started your business – You need to have been in business on February 15, 2020
• Taxpayer identification number, type of organization, legal name for applicant, business phone no., primary contact and email address.
• Owner information for those owning 20% or more- Nave, title, ownership percentage, taxpayer identification no. and address.
• Answers to questions posed and certification assertions
• Name of authorized representative
• Documentation verifying your average monthly Payroll Cost
• For active partners their K-1 from the last partnership return filed.
• 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.

• Documents Needed and Format Depending on the Type of Organization
• In order to help expedite the application process, please have the following documents available for upload as applicable to your particular type of business or organization:
• Documentation verifying your average monthly payroll costs
• Proof of wages:payroll information, e.g.,
  • 2019 W-3,
  • 2019 IRS Quarterly 940, 941 or 944 payroll tax reports,
  • Latest filed Personal Tax Returns or Business Tax Returns.
• Proof of Health Benefits and Retirement Benefits
  • Invoices group health care benefits including insurance premiums; and payment of any retirement benefits
• Proof of State and Local taxes assessed on compensation.
  • Unemployment quarterly tax returns
• The date you started your business – You need to have been in business on February 15, 2020.
• Other pertinent information required by the lender.