Information on this page is for you if you meet the following criteria: you are a self employed individual you are an independent contractor you are a sole proprietorship you were in business as of February 15, 2020 and have been in business at least since June 30, 2019 If you do not meet these criteria, click here. ´Ě» Paycheck Protection Program Loan ("PPP Loan") The federal government has determined that it will be less of an economic burden on the state, local and federal governments if employees stay employed during the crisis. These programs are in place so that your company can keep your employees employed and certain expenses paid. The Federal PPP Loan will give your small business access to a federally guaranteed loan to cover your payroll, rent and utility payments. Determine the Amount You are Eligible to Borrow Add up all of your payroll costs for the past twelve months including the following: salaries, wages, commission or similar compensation payment of cash tip or equivalent payment for vacation, parental, family, medical or sick leave allowance for dismissal or separation payments required for proving group health benefits, including insurance premiums payment of any retirement benefit; AND payment of State or local tax assessed on the compensation of employees. You will be required to to submit documentation necessary to establish your eligibility, including payroll tax filings reported to the IRS and Forms 1099-MISC. MINUS the costs of the following for the past twelve months: an amount paid to an individual employee in excess of an annual salary of $100,000 as prorated; amounts you withheld for the federal obligations of withholding income taxes and FICA; any amount paid to employees that live outside the United States; AND qualified family leave wages already paid for which a credit is allowed under the Families First Coronavirus Response Act (the earlier law effective in March 2020). DIVIDE YOUR RESULT BY 12 MULTIPLY THAT RESULT BY 2.5 As long as your result is less than $10 million, this amount is what your business is eligible to borrow. Terms of the Loan Neither your lender or the SBA will require a personal guaranty. The SBA will not have any recourse against an individual who is a shareholder, member or partner for non-payment unless someone uses the loan for something other than in the Loan Forgiveness section below. There will be no origination fee for the loan. Your business does not have to show that it could not obtain credit elsewhere. If your business uses funds for anything other than the purposes defined in Loan Forgiveness below, that principal balance will continue to be guaranteed by the SBA, have a maturity of two (2) years and an interest rate of one-half percent (0.50%). This balance is free from any prepayment penalty. No collateral is required There is a complete payment deferment of at least six months, including the payment of principal and interest. Borrower Certification You will be required to make a good faith certification of the following: that the uncertainty of current economic conditions makes necessary the loan request to support your ongoing operations; acknowledging that funds will be used to retain your workers and maintain payroll or make mortgage payments, lease payments, and utility payments; that your business does not have an application pending for a PPP Loan for the same purpose and the same amounts applied for or received under your PPP Loan; and during the period beginning on February 15, 2020 and ending on December 31, 2020, that your business has not received amounts as a PPP Loan for the same purpose and amounts. Loan Forgiveness To qualify for loan forgiveness, you are allowed to use the PPP Loan for more than only payroll. Your business may use the loan for the following: payroll costs; costs related to the continuation of group health care benefits during periods of paid sick, medical or family leave, and insurance premiums; employee salaries, commissions or similar compensation; payment of interest on any mortgage obligation (which shall NOT include any prepayment of interest or payment of principal on a mortgage obligation); rent; utility payments; and interest on any other debt obligations what were incurred before the covered period. "Rent" means rent obligated under a leasing agreement in force before February 15, 2020. "Utility Payments" means payment for a service for the distribution of electricity, gas, water, transportation, telephone or Internet access for which service began before February 15, 2020. The amount of loan forgiveness could be reduced if there is a reduction in the number of your employees; or a reduction greater than 25% in wages paid to employees. However, if the above happens between February 15, 2020 and April 26, 2020, and you undo the above by June 20, 2020, your business will still be eligible for loan forgiveness. Loan forgiveness will require an application to your lender in which you will be required to verify that you have complied with the loan forgiveness criteria. Loan forgiveness is not automatic. You must document all of your expenses paid by the PPP Loan.