paycheck Protection program (PPP)
Frequently Asked Questions
What costs are not eligible?
- Employee/owner compensation over $100,000
- Taxes imposed or withheld under IRS code chapters 21, 22, and 24
- Compensation of employees whose principal place of residence is outside the United States
What costs are eligible?
- Compensation (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 provisions of group health care benefits, including insurance premiums
- Payment of any retirement benefit
- Payment of State or local tax assessed on the compensation of employees
Is my business eligible?
- Eligible recipients include small business concerns, nonprofit organizations (IRC 501(c)(3)), veterans organization (IRC 501(c)(19)) if they have:
- Not more than 500 employees; or (if greater)
- Meet the applicable size standard in number (link to table) of employees established by the SBA
- Individuals who operate under a sole proprietorship or as an independent contractor and eligible self-employed individuals shall be eligible (these individuals will be required to submit documentation substantiating such classification such as payroll tax filings, 1099-MISC and other information)
Is there a maximum loan amount?
- The maximum amount of the loan is the lesser of:
- Sum of average total monthly payments by the applicant for payroll costs incurred during the 1-year period before the date on which the loan is made multiplied by 2.5 plus any outstanding principal balance of any EIDL loan previous issued after January 1, 2020 and ending on the date on which covered loans are made available OR
- Additional provisions regarding the above calculation
- Additional information regarding the average monthly payment calculation:
- Seasonal employers will utilize the payroll costs incurred for the 12-week period beginning February 15, 2019 or at the election of the eligible recipient, March 1, 2019 and ending June 30, 2019