• The PPP is administered through the existing SBA 7(a) Guaranteed Loan program.
• The forgivable loans can be obtained through more than 800 existing SBA-certified lenders, including banks, credit unions, and other financial institutions.
• Consult your own preferred lender to confirm that they originate SBA 7(a) loans and alert the lender that you intend to apply for a loan under the PPP.
• The loans require no personal guarantees or collateral.
• The SBA will waive all applicable fees.
• No repayment penalties apply to loans made before January 1, 2021.
• Express loans of up to $1 Million, and up to a 7-year repayment term, are expected to be approved or denied in 36 hours.
• The loans are generally available to businesses with no more than 500 employees.
• Hotels and restaurants, however, may be eligible so long as they do not have "more than 500 employees per physical location."
• Loan applicants must have a physical presence in a declared disaster area, so the loan should be sought where the operations exist, not where the company is incorporated or registered. 
• The maximum loan amount is the lesser of: (a) $10 million, or; (b) the average total monthly payments for payroll costs (wages excluding compensation per employee of more than $100,000, plus payments for leave, insurance benefits, state/local tax, payments to certain contractors) multiplied by 2.5.
• No specific showing of hardship is required to qualify for the loan. 
• The loan applicant need only provide a "good faith" certification that: (a) current economic conditions necessitate the loan; and (b) the applicant will use the funds to "retain workers and maintain payroll or make mortgage payments, lease payments and utility payments.”
• The loan can be used broadly for business expenses, including payroll costs, benefit costs, salaries and commissions, mortgage interest (but not principal), rent, utilities, and interest on loans, provided the loan was incurred prior to February 15, 2020.
• The employer is eligible for forgiveness of the loan in an amount equal to the cost of maintaining “payroll continuity” during the eight week period after loan origination. Subject to certain limitations, “payroll continuity” includes payroll costs, interest on any covered mortgage obligation or covered rent obligation and utility payments. Essentially, the loan can turn into a grant.
• There are several reasons the amount of the loan forgiveness may be reduced. Those reasons include:
• A reduction in total employee wages of more than 25 percent (among those earning $100,000 or less annually) as compared to the time period used to calculate the average payroll costs for the original loan amount.
• A reduction in staffing by comparing the full-time equivalent staffing on June 30, 2020 to a reference period of March 1, 2019 - June 30, 2019 or January 1, 2020 - February 29, 2020, whichever period was used to calculate the average payroll costs for the original loan amount.
• To encourage employers to rehire employees who have already been laid off due to the Coronavirus pandemic, the PPP does not reduce loan forgiveness to borrowers for compensation or staffing reductions that occurred between February 1, 2020 and April 26, 2020, so long as these reductions are reversed by June 30th, 2020.
• For any amounts not forgiven, the maximum term of the loan is 10 years, with a maximum interest rate of 4%.
• Guidance and regulations are expected to be issued within 30 days.

• The CARES Act created an Employee Retention Tax Credit which is a refundable payroll tax credit of 50% of “qualified” wages paid to an employee between March 12, 2020 and January 1, 2021.
• The tax credit is available for taxes owed for any calendar quarter in which an eligible business:
• is forced to fully or partially close due to a governmental directive related to the Coronavirus; or
• experiences a 50% reduction in gross revenues compared to the same calendar quarter of the prior year until their gross receipts exceed 80% of their gross receipts for the same calendar quarter in the prior year.
• The amount of “qualified wages” per employee are limited to $10,000 per employee for all quarters.
• For employers with more than 100 employees, wages eligible for the credit are wages that the employer pays employees who are not providing services. For employers with 100 or fewer employees, all wages paid qualify for the credit.
• The credit is refundable (meaning that a business can claim the credit even if it owes no tax).
• Note: Businesses receiving an SBA loan through the PPP are not eligible to receive the tax credit.

• Postponement of payment of the employer’s share of Social Security taxes due after March 27, 2020 until January 1, 2021;
• Increases the limit on the amount of interest expense businesses may deduct from 30% limitation to 50% of taxable income for 2019 and 2020;
• Increases deductibility of net operating losses -- consult your accountant for details. 

• Borrowers must:
• Have either less than 200 employees or the gross revenue of the borrower must not exceed the SBA’s small business size standards for its particular industry.
• The 3-year average gross revenue of the applicant alone, without affiliates, must not exceed the size standard for the industry in which the applicant is primarily engaged as set by the 6-digit North American Industry Classification System (“NAICS”) Code (for the restaurant industry the average annual gross revenue threshold is less than $37 million).
• The 3-year average gross revenue of the applicant combined with its affiliates must not exceed the NAICS size standard designated for either the primary industry of the applicant alone or the primary industry of the applicant and its affiliates, whichever is higher.
• Have sustained “substantial economic injury” due to the spread of the coronavirus.
• Be unable to obtain credit elsewhere.
• EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact.
• Interest rates are 3.75% for small businesses and 2.75% for non-profits.
• Repayment terms of up to 30 years are available.
• Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
• Loans over $25,000 require collateral.
• These loans are not forgivable.
• The SBA website for the EIDL Program is