Paycheck Protection Program Overview
April 1, 2020,
SMALL BUSINESS PAYCHECK PROTECTION PROGRAM
• Small employers in business as of 2/15/20 & paid payroll taxes or paid independent contractors
• Small businesses include:
o Businesses with 500 or fewer employees,
o Businesses within the SBA small business size threshold,
o Self-employed individuals (sole-proprietors and independent contractors), a
o Accommodation and food services businesses (NAICS Code 72)
o Any business assigned a franchise operator code by SBA,
• All applications must certify:
o Uncertainty makes necessary the loan request to support the ongoing operations
o Funds will be used to maintain payroll or make mortgage, lease and utility payments,
• The PPP may be used for the following costs incurred–February 15, 2020 & June 30, 2020.
o Payroll costs (see definition)
o Payments on a mortgage obligation o Rent or lease payments
o Interest on any other debt obligations that were incurred before February 15, 2020.
PPP Loan Forgiveness
• The following costs will be forgiven during the 8-week period after the day the loan is issued.
o Payroll costs
o Payments on interest of any mortgage obligation (not principal)
o Rent o Utilities