SBA PPP

Loans can be up to 2.5 x the borrower's average monthly payroll costs, not to exceed $10 million.

For Non-Seasonal Employers:

Maximum loan: 2.5 x Average total monthly payroll costs incurred during the year prior to the loan date

For businesses not operational in 2019:  2.5 x Average total monthly payroll costs incurred for January and February 2020

For Seasonal Employers:

Maximum loan:  2.5 X Average total monthly payments for payroll costs for the  12-week period beginning February 15, 2019 or March 1, 2019 (decided by the loan recipient) and ending June 30, 2019

Included and excluded Payroll items are listed below.  Use the PPP Application Worksheet and Supporting Documentation Requirements Form to calculate your loan amount.

INCLUDED Payroll Costs:

• For Employers:  The sum of payments of any compensation with respect to employees that is a:
  • salary, wage, commission, or similar compensation
  • payment of cash tip or equivalent
  • payment for vacation, parental, family, medical, or sick leave
  • allowance for dismissal or separation
  • payment required for the provision of group health care benefits, including insurance premiums
  • payment of any retirement benefit
  • payment of state or local tax assessed on the compensation of the employee
• For Sole Proprietors, Independent Contractors, and Self-Employed Individuals:  The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in one year, as pro-rated for the covered period.

EXCLUDED Payroll Costs:

• Compensation of an individual employee in excess of an annual salary of $100,000, as pro-rated for the period February 15, 2020 to June 30, 2020
• Payroll taxes, railroad retirement taxes, and income taxes
• Any compensation of an employee whose principal place of residence is outside of the United States
• Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116-5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act

U.S. Chamber of Commerce, "Coronavirus Emergency Loans Small Business Guide and Checklist"

A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period, beginning on the date of the origination of the loan:

• Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
• Interest on the mortgage obligation incurred in the ordinary course of business
• Rent on a leasing agreement
• Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
• For borrowers with tipped employees, additional wages paid to those employees

The loan forgiveness amount cannot exceed the principal.

The amount of loan forgiveness is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.

Reduction in employment or wages that occur during the period beginning on February 15, 2020, and ending 30 days after enactment of the CARES Act, (as compared to February 15, 2020) shall not reduce the amount of loan forgiveness IF by June 30, 2020 the borrower eliminates the reduction in employees or reduction in wages.

U.S. Chamber of Commerce, "Coronavirus Emergency Loans Small Business Guide and Checklist"