The SBA Paycheck Protection Program
Ultra Low Interest Rates
100% Loan Forgiveness
Defer Your Payments
Up To 2 Year Terms
100% Loan Forgiveness
Qualified Loan Uses
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Frequently Asked Questions (FAQs)Answers to common questions on the Paycheck Protection Program.
What is Celeri Network?
What is the Paycheck Protection Program?
The Paycheck Protection Program is a recently added SBA loan program. The Paycheck Protection Program offers federally-guaranteed loans to eligible businesses. The loans can be partially or fully forgiven. The Paycheck Protection Program was added to the SBA as part of the CARES Act, which is the US Government’s response to Coronavirus (COVID-19). The CARES Act has designated $349 billion for the program. The Paycheck Protection Program covers operational expenses beginning on February 15, 2020 and ending on June 30, 2020.
Is my small business eligible for the Paycheck Protection Program?
The eligibility criteria for the Paycheck Protection Program is extended to qualified small businesses, non-profit organizations, veterans organization, or tribal businesses. The business should employ less than 500 people.
How can I use the Paycheck Protection Program loan?
The loan may be used for the following uses:
- Commercial space rents
- Commercial space utilities
- Payroll costs
- Employee commissions
- Insurance premiums
- Healthcare benefits during paid sick, family, or medical leave
- Mortgage interest payments (not prepayment or mortgage principal)
- Interest on any other debt obligations incurred before the covered period
How does the PPP compare to other SBA programs?
|CARES 7(A) PAYCHECK PROTECTION PROGRAM||ECONOMIC INJURY DISASTER LOAN (EIDL) 7(B)||STANDARD 7(A)|
|Eligibility||– US based businesses
– Operating on February 15th, 2020
– 500 or less employees, or the employee limit governed by NAICS code
– Can certify economic impact due to Covid-19
|– US based businesses – Economic hardship due to Covid-19 can be shown via a decline in revenue||– US based businesses (for profit only)
– Minimum personal credit score of 680
– Establishment of business credit
– Minimum of 2 years in business
– Business is profitable
|Maximum Amount||$10 million||$2 million||$5 million|
|Funding Amount Calculation||2.5X your prior average monthly payroll||Dependent on loss incurred due to COVID-19||Dependent on application|
|Maximum Interest||1%||3.75%||Prime + 3.7%|
|Maximum Term||No payments due for the first 6 months, term up to 2 years||Up to 30 years||Up to 25 years|
|Can Be Combined With||– Standard 7(a) loan (if obtained before 2/15/20)
– EIDL 7(b) loan
|– Physical Disaster Loans with a maximum combined amount of $2,000,000
– CARES 7(a) Paycheck Protection Plan
– Standard 7(a) loan
|– EIDL 7(b) loan|
|Cannot be Combined With||– Standard 7(a) loan if obtained after 2/15/2020
– New Standard 7(a) loan application
|– An existing CARES 7(a) Paycheck Protection Plan loan|
|Application Supporting Documents||– Payroll documentation showing number of employees and amounts spent over last 12 months
– 3 months of business bank statements
– Transcripts from payroll taxes paid
|– Most recent Federal Tax Return
– Year end profit and Loss statement
– A current year to date Profit and Loss statement
– Monthly break down of sales figures
|– Business financials relevant to the past 90 days (balance sheet)
– Debt schedule or purchase contract
– Past 2 years of business tax returns
– Past 2 years of personal tax returns
Which businesses are eligible for the PPP?
trade or business
In addition, some special rules may make you eligible:
the 500-employee rule is applied on a per physical location basis
from an approved Small Business Investment Company the normal
affiliation rules do not apply
Can I qualify if I don't have employees?
What's the difference between the PPP and EIDL?
What is the interest rate and fees?
How do I get loan forgiveness?
60% of the PPP must be used for payroll costs for forgiveness. Loan forgiveness will be reduced if you decrease your full-time employee headcount.
Any part of the loan that is not forgiven is repaid over 5 years.
Note: there are technical calculations for this law and you should seek out your own financial and legal counsel for understanding loan forgiveness and how it applies to your situation.