United States Small Business Administration + Signature Bank of Arkansas
Frequently Asked Questions
How much money am I eligible for?
Loans can be up to 2.5 x the borrower’s average monthly payroll costs, less excluded payroll costs, not to exceed $10 million.
What can I use the money for?
What is included in payroll costs?
Are there any payroll cost exceptions?
Eligible payroll costs do not include employee compensation above $100,000 (pro-rated for the applicable period), federal employment taxes imposed or withheld taxes; compensation to an employee whose principal residence is outside of the U.S.
How can I qualify for loan forgiveness?
Only certain costs incurred and payments made during the eight-week period following the date of the loan are eligible for forgiveness, including the following:
Are there any limitations for forgiveness?
Total forgiveness costs cannot exceed the principal amount of the loan. Additionally, the total forgivable costs are reduced by a statutory formula if the business fails to employ its normal workforce of full-time employees (“FTEs”) during the eight-week period.
How can the forgiveness be reduced?
The amount of loan forgiveness calculated above is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.
How will I apply for forgiveness?
The borrower must apply to the lender for loan forgiveness with supporting documentation. Accordingly, borrowers must practice detailed accounting and maintain complete and accurate record keeping in order to take advantage of these provisions