- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Loan payments will be deferred for 6 months
- Save the PPP application to your computer before filling it out
- Resave after completion
- Upload to the PPP application securely using the form below along with the required payroll documents
- For most companies, use (i) your last twelve months of payroll or (ii) your full year 2019 payroll. We recommend that you prepare both calculations and consult with your lender for guidance on the appropriate time frame due to conflicting views between the Treasury Department guidance and the sample PPP Loan instructions on this.
- For seasonal businesses, use a 12 week period between February 15, 2019 and June 30, 2019*.
- For new companies, use January 1, 2020 to February 29, 2020*.
- Sole Proprietorship – Net Income from 2019 (line 31 on Schedule C) divided by 12 or an eight week period between February 15, 2019 and June 30, 2019 (divided by 2 to get monthly average)
What documents do I need to provide with application (Independent Contractors cannot be included in calculation):
- 940 IRS Form
- 941 IRS Form (4 of them to capture full 12 months)
- W3 (S Corp)
- Schedule C from 2019 (self-employed, independent contractor, sole proprietor)
- Mid Minnesota will send you an email with the SBA approval.
- A few days after SBA approval notification email, the loan documents will follow.
-Completed PPP application
-Payroll documentation from previous year
Who can apply?
For this program, the SBA’s affiliation standards are waived for small businesses
What do I need to apply?
What other documents will I need to include in my application?
Do I need to first look for other funds before applying to this program?
How long will this program last?
How many loans can I take out under this program?
What can I use these loans for?
- Payroll costs, including benefits;
- Interest on mortgage obligations, incurred before February 15, 2020;
- Rent, under lease agreements in force before February 15, 2020; and
- Utilities, for which service began before February 15, 2020.
What counts as payroll costs?
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
- State and local taxes assessed on compensation; and
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
How large can my loan be?
How much of my loan will be forgiven?
You will also owe money if you do not maintain your staff and payroll.
- Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
- Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
- Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
How can I request loan forgiveness?
What is my interest rate?
When do I need to start paying interest on my loan?
When is my loan due?
Can I pay my loan earlier than 2 years?
Do I need to pledge any collateral for these loans?
Do I need to personally guarantee this loan?
***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***
What do I need to certify?
- Current economic uncertainty makes the loan necessary to support your ongoing operations.
- The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
- You have not and will not receive another loan under this program.
- You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
- Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
- All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
- You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.