Paycheck Protection Program - Frequently Asked Questions
Frequently Asked Questions
Which Loan Forgiveness Application should I use?
What is my Lender PPP Loan Number and SBA PPP Loan Number?
Your Lender PPP Loan Number is at the top of your Note (on page 1) and the SBA PPP Loan Number is under the collateral section of the Note (on page 2).
Do I get a choice between an 8-week Covered Period and 24-week Covered Period?
Yes, all loans approved before June 5, 2020 have the option to elect to use the 8-week Covered Period. While each Borrower’s situation is different, please keep in mind the FTE and hourly/salary wage requirements for the applicable Covered Period.
If I stay with the 24-week period, do I have the option to receive more loan proceeds?
What is the max compensation for each employee?
For an 8-week Covered Period, the amount is capped at $15,385. For a 24-week Covered Period, the amount is capped at $46,154.
What is the max compensation for each owner-employee, self-employed individual or general partner?
For an 8-week Covered Period, the amount is capped at $15,385. For a 24-week Covered Period, the amount is capped at $20,833.
What payroll costs are eligible for forgiveness?
Currently, the Eligible Payroll Costs are defined as the payroll costs paid and payroll costs incurred during the 8-week or 24-week Covered Period. Payroll costs are considered paid on the day that paychecks are distributed, or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period).
When must a borrower apply for loan forgiveness or start making payments on a loan?
A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.