Based upon information available on 4/2. Subject to change.
Payroll Protection Plan
Gather the following information:
- Business legal name, DBA, or tradename
- Business TIN (EIN, SSN)
- Average monthly payroll
- Number of jobs
- Purpose of loan (may include payroll, rent/mortgage, interest, utilities)
- A list of all owners with greater than 20% ownership stakes
How do I calculate Average Monthly Payroll?
For purposes of calculating “Average Monthly Payroll”, most applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee. For seasonal businesses, the applicant may elect to instead use average monthly payroll for the time period between February 15, 2019 and June 30, 2019, excluding costs over $100,000 on an annualized basis for each employee. For new businesses, average monthly payroll may be calculated using the time period from January 1, 2020 to February 29, 2020, excluding costs over $100,000 on an annualized basis for each employee.
Owners with 20% + ownership stakes should provide:
- Owner name, title, % ownership, TIN (EIN, SSN), and address
- If the owner is also an owner of any other business, or has common management with another business, an addendum should be created listing all affiliates and a description of the relationship
- An addendum providing details if the business has received an Economic Injury Disaster Loan between January 31, 2020 and April 3, 2020
The business and each 20% owner will certify:
- Current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.
- The funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, utility payments. I understand that if the funds are used for unauthorized purposes, the federal government may pursue criminal fraud charges.
- Documentation verifying the number of full-time equivalent employees on payroll as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight week period following this loan will be provided to the lender.
- 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.
- During the period beginning February 15, 2020 and ending December 31, 2020, the applicant has not and will not receive another loan under this program.
- I further certify that the information provided in this application and the information that I have provided in all supporting documents and forms is true and accurate. I realize that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under USC by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.
- I acknowledge that the lender will calculate the eligible loan amount using tax documents I have submitted. I affirm that these tax documents are identical to those I submitted to the IRS. I also understand, acknowledge, and agree that the lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.
Important to note: disqualifying questions
It is our understanding that if the applicant has an affirmative answer to these questions, the loan will not be approved:
- Is the business or any owner presently suspended, debarred, proposed for debarment, declared ineligible, voluntarily excluded from participation in this transaction by any federal department or agency, or presently involved in any bankruptcy?
- Has the business, any of its owners, or any business owned or controlled by any of them, ever obtained a direct or guaranteed loan from SBA or any other federal agency that is currently delinquent or has defaulted in the last 7 years and caused a loss to the government?
- Are you presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or presently incarcerated, on probation or parole?
- Within the last 7 years, for any felony or misdemeanor for a crime against a minor, have you: 1) been convicted; 2) pleaded guilty; 3) pleaded nolo contendere; 4) been placed on pretrial diversion; or 5) been placed on any form of parole or probation (including probation before judgement)?
It is our understanding that if the applicant chooses “no” from the following options, the loan will not be approved:
(a) I am a U.S. Citizen (b) I have Lawful Permanent Resident status (c) No