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PAYCHECK PAYMENT PROGRAM (PPP)

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PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET:

BORROWERS

The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to
small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the
same for everyone.
The loan amounts will be forgiven as long as:
 The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and
utility costs over the 8 week period after the loan is made; and
 Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely
high subscription, it is anticipated that not more than 25% of the forgiven amount may be for
non-payroll costs.
Loan payments will be deferred for 6 months.
When can I apply?
 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.
Where can I apply? You can apply through any existing SBA lender or through any federally
insured depository institution, federally insured credit union, and Farm Credit System institution
that is participating. Other regulated lenders will be available to make these loans once they are
approved and enrolled in the program. You should consult with your local lender as to whether it
is participating. Visit www.sba.gov for a list of SBA lenders.
Who can apply? All businesses – including nonprofits, veterans organizations, Tribal business
concerns, sole proprietorships, 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).
For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel
and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are
franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial
assistance from small business investment companies licensed by the SBA. Additional guidance
may be released as appropriate.

What do I need to apply? You will need to complete the Paycheck Protection Program loan
application and submit the application with the required documentation to an approved lender
that is available to process your application by June 30, 2020. Click HERE for the application.
What other documents will I need to include in my application? You will need to provide
your lender with payroll documentation.
Do I need to first look for other funds before applying to this program? No. We are waiving
the usual SBA requirement that you try to obtain some or all of the loan funds from other sources
(i.e., we are waiving the Credit Elsewhere requirement).
How long will this program last? Although the program is open until June 30, 2020, we
encourage you to apply as quickly as you can because there is a funding cap and lenders need
time to process your loan.
How many loans can I take out under this program? Only one.
What can I use these loans for? You should use the proceeds from these loans on your:
 Payroll costs, including benefits;
 Interest on mortgage obligations, incurred before February 15, 2020;
 Rent, under lease agreements in force before February 15, 2020; and
 Utilities, for which service began before February 15, 2020.
What counts as payroll costs? Payroll costs include:
 Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each