Paycheck Protection Program Loan Terms & Details
Scroll Down to Reference Details to Get Your Loan Forgiven. Please Note Loan Funding is Now Closed.
Update: May 28, 2020
To Our Business Community,
We have officially closed our Paycheck Protection Program (PPP) loan application process. We are proud to say that this the legislation began on April 2, 2020, we have helped more than 830 small businesses nationwide by providing $242.32 million to help pay the salaries of thousands of employees. We know that receiving a Paycheck Protection Program loan may not necessarily make you whole, but we hope it helps you get through this unprecedented time so you can (hopefully) persevere on the backend of this pandemic.
For those that did receive a PPP loan, please refer to our regularly updated guide "Top Tips To Get Your Paycheck Protection Program Loan Forgiven" and make sure you're on our email list so you receive our weekly emails with ongoing forgiveness guidance. Contract your CBC representative if you received a PPP loan but are not recieving those emails.
Please note the details of the PPP loan are still listed below for your reference.
Thank you for giving us the opportunity to serve your banking needs,
Disclaimer: An entity can only submit one application under the Paycheck Protection Program. Details of the program are subject to change without notice and are at the discretion of the Small Business Administration.
Which Businesses Are Eligible?
- Business must be operational as of Feb. 15, 2020
- A business with fewer than 500 total employees or that otherwise meets the SBA’s certain size standard
- A 501(c)(3) with fewer than 500 total employees
- An individual who operates as a sole proprietor, independent contractor, or is self-employed who regularly carries on any trade or business
- A Tribal business concern that meets the SBA size standard
- A 501(c)(19) Veterans Organization that meets the SBA size standard
What Are the Terms?
- Fixed rate of 1.00% with no pre-payment penalty
- Businesses are eligible for the lesser of 2.5x the average cost of monthly payroll incurred over the year ending in 2019, not to exceed $10,000,000
- No payments for 6 months, although interest accrues during this time
- Loan is due in 2 years
- Only one (1) loan can be funded per business
NOTE: If you are a seasonal or new business, you will use different applicable time periods for your calculations.
What Can This Loan Be Used For?
- Payroll costs, including benefits
- Must be 60% or more to be forgiven – updated per the June 5, 2020 Flexibility Act
- Interest on debt obligations, incurred before Feb. 15, 2020
- Rent, under lease agreements in force before Feb. 15, 2020
- Utilities, for which service began before Feb. 15, 2020
How Do I Define Payroll Costs?
For Employers: The sum of payments of any compensation with respect to employees that is:
- Salary, wages, commissions, or tips (up to $100,000 annually per employee)
- Benefits include 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 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.
How Much of the Loan Can Be Forgiven?
The loan amounts will be forgiven as long as:
- Funds are used in the 24 weeks immediately following funding – updated per the June 5, 2020 Flexibility Act
- 60% of the loan is used for payroll costs (using the same definition above)
- The remaining 40% of the loan is used to pay debt obligations, rent or utilities
- You maintain your staff and payroll
If there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees, the amount of loan forgiveness calculated above is reduced. The loan forgiveness cannot exceed the principal.