Frequently asked questions about the Paycheck Protection Program

By Katie McBeth

The Small Business Administration (SBA) and the U.S. Department of the Treasury authorized Paycheck Protection Program (PPP) loans to help small businesses pay employees and cover expenses. The PPP consists of billions in government-backed loans and is part of the $2 trillion CARES Act.

Note: The Paycheck Protection Program Flexibility Act (PPP Flex Act) was signed into law on June 5, 2020. The PPP Flex Act extends the availability of loans under the Paycheck Protection Program (PPP) and adjusts certain rules applicable to PPP loans. The information reflected here may therefore be outdated. We are working to update our resources to reflect these updates to the PPP, so be sure to check back soon. Please refer to the latest guidance from the SBA and Treasury to confirm current program rules and how they apply to your particular situation.

Who’s eligible?

Who can apply for a Paycheck Protection Program loan?

In general, small businesses and others affected by the coronavirus are eligible to apply. Eligible businesses include:

  • Small business concerns, as defined by the Small Business Act
  • Any businesses with fewer than 500 employees, including 501(c)(3) nonprofit organizations, 501(c)(19) veterans’ organizations, and tribal businesses (15 U.S.C. § 657a(b)(2)(C))
  • Any businesses with more than 500 employees, including 501(c)(3) nonprofit organizations, 501(c)(19) veterans’ organizations, and tribal businesses (15 U.S.C. § 657a(b)(2)(C)), if they meet the SBA’s size standards for their industry in number of employees, if applicable
  • Faith-based organizations that have fewer than 500 employees that pay federal payroll taxes using their own IRS EIN or that would be eligible for a deduction under the second sentence of 26 U.S.C. 512(b)(12) if the organization earned unrelated business taxable income
  • Sole proprietorships, independent contractors, and eligible self-employed individuals
  • Businesses in the hospitality or food service industry who have more than 500 employees but that employ fewer than 500 employees per location

For purposes of meeting the 500-employee or applicable SBA size threshold, some businesses are exempted from applying the SBA’s affiliation rules. Those are:

  • Businesses in the hospitality and food service industries with fewer than 500 employees
  • Franchises that have been assigned a franchise identifier code by the SBA
  • Businesses that have received financial assistance from a Small Business Investment Company (SBIC)

Some religious organizations may also be exempted from applying SBA affiliation rules for certain relationships that are based on a religious teaching or belief or otherwise constitute a part of the exercise of religion.

Applying for a PPP loan

When can I apply for the Paycheck Protection Program?

Eligible small businesses, sole proprietorships, organizations, independent contractors, and self-employed individuals can now submit applications for a loan under the Paycheck Protection Program through approved SBA lenders.

How long will I have to apply for a Paycheck Protection Program loan?

The Paycheck Protection Program is currently available to borrowers through June 30, 2020. The U.S. Department of the Treasury suggests applying for the loan as early as possible. Lenders may need time to process applications.

Where can I apply for a Paycheck Protection Program loan?

Applications will be processed through approved 7(a) SBA lenders, or any participating federally insured depository institutions, federally insured credit unions, and Farm Credit System institutions. Additional lenders approved by the SBA and enrolled in the Paycheck Protection Program may also participate. Contact your preferred local lender to find out if it’s participating in the Paycheck Protection Program.

How much can I request under the Paycheck Protection Program?

Loans through the Paycheck Protection Program are capped at $10 million per applicant. Loan amounts for eligible applicants are determined based on the business’s average monthly qualified payroll costs from the last year and will be approximately 250% of that amount.

To calculate their loan request amounts, borrowers can refer to the Treasury Department’s guidelines, which begin on page 8 of the Interim Final Rule. Applicants may be required to provide payroll documentation with their applications.

How many Paycheck Protection Program loans can I apply for?

The Small Business Administration is currently putting a one-time cap on all loans through the Paycheck Protection Program. If you need additional assistance, your business may be eligible for other forms of financial aid. Your business may additionally consider state assistance or an Economic Injury Disaster Loan (EIDL). Businesses can apply for a PPP loan and an EIDL.

How do I calculate my average monthly payroll costs?

There are several ways in which you may calculate average monthly qualified payroll costs. One way, which may be useful for many applications, is to:

  • Aggregate payroll costs from the last 12 months or for calendar year 2019 for employees whose principal place of residence is in the U.S.
  • Subtract any compensation paid to an employee in excess of an annual salary of $100,000 and/or any amounts paid to an independent contractor or sole proprietor in excess of $100,000 annually
  • Divide the difference in amounts calculated in Steps 1 and 2 by 12. This is your average monthly payroll costs.

 

On the Paycheck Protection Program borrower application form, you will be asked to calculate your maximum loan amount by multiplying your average monthly payroll costs in 2019 or the last twelve months by 2.5 and adding any amount outstanding from an Economic Injury Disaster Loan (EIDL) made between January 31, 2020, and April 3, 2020, less any advance under an EIDL COVID-19 loan.

If your business was not operational in 2019, other calculations may apply.
The Treasury Department provides examples on page 8 of the Interim Final Rule.

What is an included payroll cost?

Payroll costs for small businesses include compensation to employees whose principal residence is in the U.S. in the form of:

  • Salary, wages, commissions, or similar compensation
  • Cash tips or equivalent
  • 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
  • Payment of any retirement benefit and
  • Payment of state and local taxes assessed on compensation

 

Payroll costs do not include employee or owner compensation over $100,000 or compensation for employees who live outside the U.S. Payroll costs also do not include qualified sick and family leave covered by the Families First Coronavirus Response Act.

What do I need to apply?

Eligible businesses can complete the Paycheck Protection Program loan application and submit it to an approved lender. Applicants may need to provide a variety of documentation and information, including but not limited to:

  • Articles of incorporation for each borrowing entity and bylaws or operating agreement for each borrowing entity
  • A list of owners who hold at least a 20% stake in your company and copies of their driver’s licenses
  • Payroll expense verification documents
  • RS forms 940 and 941
  • Payroll summary report with corresponding bank statements
  • Breakdown of payroll benefits, such as vacation, allowance for dismissal, group health care benefits, retirement benefits, etc.
  • Form 1099-MISC if you’re an independent contractor
  • Certification that all employees live within the U.S., and a list of employees who do not live in the U.S. and their salaries
  • Trailing 12-month profit and loss statements, as of the date of application, for all applicants
  • Most recent mortgage or rent statements and utility bills

 

What does my business need to certify on the loan application?

As part of the application, business owners will need to make certain certifications in good faith, including that:

  • PPP funds will be used to retain employees and maintain payroll
  • PPP funds will be used to make mortgage, rent, and utility payments
  • No more than 25% of the forgiven amount will be for non-payroll costs
  • They will not receive another loan under the Paycheck Protection Program
  • They will provide all the necessary lender documentation

I laid off my employees. Can I still apply for the Paycheck Protection Program?

Yes. The program is retroactive to February 15, 2020, according to the U.S. Senate Committee on Small Business and Entrepreneurship. If you laid off employees between February 15 and April 26, 2020, your business will not be disqualified from the loan for this reason. But you must re-hire those employees and restore wages by December 31, 2020, or before the date you submit your application for loan forgiveness, whichever comes first. Otherwise, your loan forgiveness amount may be reduced. Businesses that are approved for a Paycheck Protection Program loan may be able to pay those workers retroactively subject to certain requirements.

Self employed applicants

Can an individual with self-employment income apply for a Paycheck Protection Program loan?

Yes. As of April 10, eligible self-employed individuals, sole proprietors, and independent contractors can apply for PPP loans to cover owner compensation and employee payroll costs (if applicable), among other allowable expenses. If you receive self-employment income, you may be eligible for a PPP loan if:

  • You were in operation on February 15, 2020
  • Your principal place of residence is in the United States
  • You filed or will file a Form 1040 Schedule C for 2019

Learn more here.

QuickBooks Capital is able to process applications from individuals with self- employment income who filed a 2019 Form 1040 Schedule C through TurboTax and have linked a bank account through their QuickBooks account, so long as they do not have employees and did not receive a loan through the SBA

Economic Injury Disaster loan (“EIDL”) program between 1/31/2020 and 4/3/2020. Other lenders may be able to offer you a PPP loan when we cannot. Additional SBA guidance will be issued for individuals with self-employment income who were not in operation in 2019, but who were in operation on February 15, 2020 and who will file a Form 1040 Schedule C for 2020.

How are loan amounts determined for individuals with self-employment income?

How you calculate your maximum loan amount depends upon whether you employ other individuals. If you have no employees, your maximum loan amount is determined by your net profit. You can find your net profit amount in your 2019 Form 1040 Schedule C on line 31. If line 31 on Schedule C is greater than $100,000, reduce it to $100,000. If line 31 on Schedule C is zero or less, you are not eligible for a PPP loan.

If you have employees, your maximum loan amount is determined by the sum of the following:

  • Net profits on line 31 of your 2019 Form 1040 Schedule C (if line 31 on Schedule C is greater than $100,000, reduce it to $100,000. If line 31 on Schedule C is less than zero, set it to zero.)
  • Gross wages from Form 941 on line 5c, column 1 from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips. Subtract any amounts paid to any individual employee in excess of $100,000 annualized and any amounts paid to any employee whose principal place of residence is outside the U.S.
  • Employer health insurance contributions on line 14 of your 2019 Form 1040 Schedule C
  • Retirement contributions on line 19 of your 2019 Form 1040 Schedule C
  • State and local taxes assessed on employee compensation (commonly referred to as State Unemployment Tax or SUTA from state quarterly wage reporting forms)

 

To estimate your loan amount:

  • Take your net profit amount (in the case of no employees) or your 2019 payroll costs, as computed above (in the case of employees.)
  • Divide it by 12
  • Then multiply it by 2.5
  • Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

There is a $10 million cap on all loans.

Learn more here.

Note: QuickBooks Capital is only able to process applications from individuals with self-employment income who do not have employees. Other lenders may be able to offer you a PPP loan when we cannot.

I’m an individual with self-employment income and file a Form 1040 Schedule C. What can I use a PPP loan for?

You can use the loan for:

  • Owner compensation replacement (calculated based on 2019 net profit.)
  • Employee payroll costs for employees whose principal place of residence is in the U.S. (if you have employees.)
  • As provided on your 2019 Form 1040 Schedule C:
  • Mortgage interest payments on any business mortgage obligation on real or personal property
  • Business rent payments
  • Business utility payments

 

You must have claimed or be entitled to claim a deduction for such expenses on your 2019 Form 1040 Schedule C for them to be a permissible use during the eight-week period following the first disbursement of the loan. For example, if you did not claim or are not entitled to claim utilities expenses on your 2019 Form 1040 Schedule C, you cannot use the proceeds for utilities during the covered period.

  • Interest payments for loans or other debts incurred before February 15, 2020
  • Refinancing an SBA Economic Injury Disaster Loan made between January 31, 2020 and April 3, 2020 for payroll costs.

 

Note that if you want your loan to be forgiven in full, certain requirements must be met:

  • Use 100% of your PPP funds within your Loan Forgiveness Covered Period
  • Use 60% or more of PPP funds on eligible payroll costs
  • Use up to 40% of PPP funds on other eligible non-payroll costs

If you use less than 60% of your PPP funds on eligible payroll costs, you will only be eligible for partial loan forgiveness. Please note that your total forgiveness amount depends on other criteria as well. For example, salary, wage or headcount reductions may reduce the forgivable amount for some borrowers.

Learn more here.

What documents does a self-employed person who filed a Schedule C need to apply for a PPP loan?

It depends on whether you have employees. If you are self-employed with no employees, you need the following to apply:

  • Your 2019 Form 1040 Schedule C. (It’s OK if you haven’t filed it yet.)
  • A 2019 1099-MISC, invoice, bank statement, or book of record that establishes you are self-employed.
  • A 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.

 

If you are self-employed and have employees, you need the following to apply:

  • Your 2019 Form 1040 Schedule C
  • Form 941 (or other tax forms or equivalent payroll processor records containing similar information
  • State quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or equivalent payroll processor records
  • Evidence of any retirement and health insurance contributions, if applicable
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 to establish you were in operation on February 15, 2020

 

Additional SBA guidance will be issued for individuals with self-employment income who were not in operation in 2019, but who were in operation on February 15, 2020 and who will file a Form 1040 Schedule C for 2020.

Learn more here.

Are loans for self-employed individuals forgivable?

Yes. Loans for self-employed folks can be 100% forgiven, subject to certain requirements.

Learn more here.

Can individuals with self-employment income access multiple forms of aid at the same time?

Yes. You can receive multiple forms of aid.

For example, you can receive both an EIDL loan and a PPP loan, but you cannot use them both for the same purpose.

Learn more here.

Note that participation in the PPP may affect eligibility for state-administered unemployment compensation or unemployment assistance programs, including the CARES Act Employee Retention Credits.

QuickBooks Capital is not able to process applications from individuals who received a loan through the SBA EIDL loan program between 1/31/2020 and 4/3/2020.

I’m an individual with self-employment income and file a Form 1040 Schedule C. Do I need to file my 2019 taxes before I apply for a PPP loan?

No. But if you have not yet filed your 2019 Form 1040 Schedule C, you will need to fill it out and calculate the information needed to apply for a loan.

Note that to apply for a PPP loan within QuickBooks Capital, you need to have filed your 2019 taxes with TurboTax, which QuickBooks Capital will use to help you fill out your application. You must also have linked a bank account through your QuickBooks account, have no employees, and not received a loan through the SBA EIDL loan program between 1/31/2020 and 4/3/2020. Other lenders may be able to offer you a PPP loan when we cannot or for a higher amount.

Learn more here.

I’m an individual with self-employment income and file a Form 1040 Schedule C. Can I apply for PPP if my 2019 net profit was negative?

It depends. If you receive self-employment income and do not have employees, you are not eligible for a PPP loan if line 31 on Form 1040 Schedule C is zero or less. However, if you receive self-employment income and have employees, you may be eligible for a PPP loan even though your 2019 net profit was negative.

Learn more here.

QuickBooks Capital is not able to accept applications from self-employed individuals who filed a Form 1040 Schedule C and have employees
Other lenders may be able to offer you a PPP loan when we cannot or for a higher amount.

How to use federal relief funds

What can I use loans from the Paycheck Protection Program for?

If you receive a loan through the Paycheck Protection Program you can use the loan proceeds for any allowable use, including payroll costs, rent, certain interest payments, and more. However, for the loan to be forgiven in whole, certain requirements must be met:

  • Use 100% of your PPP funds within your Loan Forgiveness Covered Period
  • Use 60% or more of PPP funds on eligible payroll costs
  • Use up to 40% of PPP funds on other eligible non-payroll costs

If you use less than 60% of your PPP funds on eligible payroll costs, you will only be eligible for partial loan forgiveness. Please note that your total forgiveness amount depends on other criteria as well. For example, salary, wage or headcount reductions may reduce the forgivable amount for some borrowers.

To avoid reductions to your forgiveness amount, you must also rehire any employees you let go or increase any wages you decreased between February 15 and April 26, 2020, by December 31, 2020, or before the date you submit your loan forgiveness application, whichever comes first.

Note that your forgiveness amount won’t be reduced if your business was unable to operate between February 15, 2020 and the end of your Loan Forgiveness Covered Period at the same level as before February 1, 2020, due to compliance with certain federal requirements or guidance issued between March 1, 2020 and December 31, 2020 related to maintaining standards of sanitation, social distancing, or other work or customer safety requirements related to COVID-19.

For support to meet other needs, check out the Economic Injury Disaster Loan and advance offered by the SBA.

What are the loans terms under the Paycheck Protection Program?

Paycheck Protection Program loan terms include, but are not limited to:

  • Interest rates at 1%
  • Initial loan payments may be deferred until the date the SBA pays your loan forgiveness to your lender. If you do not apply for forgiveness, payments will begin 10 months after the last day of your loan forgiveness covered period.
  • A maturity of 5 years for loans approved by the SBA on or after June 5, 2020. For loans approved by the SBA before June 5, 2020, the maturity is 2 years unless you agree with your lender to extend to 5 years.

Do loans under the Paycheck Protection Program cover paid sick leave?

If you qualify for the Paycheck Protection Program, you can use your loan to pay employer-provided parental, family, medical, and sick leave and other forms of paid time off. Paycheck Protection Program loans don’t cover emergency paid sick and family leave provided by the Families First Coronavirus Response Act (FFCRA).

What can’t I do with my Paycheck Protection Program loan?

If you receive a loan through the Paycheck Protection Program you can use funds to pay for anything you need for your business. However, for the loan to be forgiven in whole, certain requirements must be met:

  • Use 100% of your PPP funds within your Loan Forgiveness Covered Period
  • Use 60% or more of PPP funds on eligible payroll costs
  • Use up to 40% of PPP funds on other eligible non-payroll costs

If you use less than 60% of your PPP funds on eligible payroll costs, you will only be eligible for partial loan forgiveness. Please note that your total forgiveness amount depends on other criteria as well. For example, salary, wage or headcount reductions may reduce the forgivable amount for some borrowers.

For loan support to meet other needs, check out the Economic Injury Disaster Loan and advance offered by the SBA.

Loan forgiveness

What is the PPP Flexibility Act?

The Paycheck Protection Program Flexibility Act (PPP Flex Act) was signed into law on June 5, 2020. The PPP Flex Act provides borrowers with more flexibility, including extending the amount of time to spend PPP funds for forgiveness purposes, and adjusts certain rules applicable to PPP loans.

Are loans through the Paycheck Protection Program forgivable?

Loans may be forgivable, in whole or in part, if the funds are used as directed by the SBA, including but not limited to the following criteria:

  • Use at least 60% of the funds for payroll costs
  • Use no more than 40% on eligible non-payroll costs
  • Maintain the same number of employees on the payroll
  • Maintain employee salary levels
  • Rehire and restore wages to employees who were laid off between February 15 and April 26, 2020, as a result of the coronavirus by December 31, 2020, or before the date you submit your loan forgiveness application, whichever comes first.

 

Note that your forgiveness amount won’t be reduced if your business was unable to operate between February 15, 2020 and the end of your Loan Forgiveness Covered Period at the same level as before February 1, 2020, due to compliance with certain federal requirements or guidance issued between March 1, 2020 and December 31, 2020 related to maintaining standards of sanitation, social distancing, or other work or customer safety requirements related to COVID-19.

If you use less than 60% of your PPP funds on eligible payroll costs, you will only be eligible for partial loan forgiveness.

Lenders are responsible for approving and denying loan forgiveness. To apply for loan forgiveness, you can submit a request to your lender.

What is the loan forgiveness covered period?

If you received your funds after June 5, 2020, your loan forgiveness covered period is 24 weeks. If you received your PPP funds before June 5, 2020, you can choose to use either an 8-week or 24-week loan forgiveness covered period.

Your loan forgiveness covered period generally begins on the date you received your PPP funds (or if you received them on more than one date, the first date you received PPP funds), and must end no later than December 31, 2020. You don’t have to use all your loan proceeds during the loan forgiveness covered period, but only eligible costs paid during that period (and certain eligible costs incurred but not paid during that period) are eligible for forgiveness. Costs incurred after the loan forgiveness covered period won’t be forgiven.

What is the alternative payroll covered period?

Solely for the purpose of calculating payroll (and certain required reductions), if you are a borrower with a biweekly or more frequent payroll schedule, you may choose an “alternative payroll covered period” that aligns with your payroll cycle.

The alternative payroll covered period begins on the first day of the first pay period following receipt of your PPP funds. For example, if you received your PPP funds on Monday, April 20, and the first day of your first pay period following receipt of your PPP funds is Sunday, April 26, the first day of the alternative payroll covered period is April 26. If you choose to use this alternative period, it applies only to payroll costs and certain required reductions.

How do I apply for loan forgiveness?

If you’re a PPP loan recipient, you will submit a PPP loan forgiveness application to your lender or the lender servicing your PPP loan. Once you submit your application for forgiveness, the lender will have 60 days to accept or deny your application.

Your PPP loan forgiveness application must include the documents verifying your payroll, full time employees, and non-payroll expenses. Note that if you opt to use an EZ PPP Loan Applications, certain documentation requirements may differ.

Payroll expenses for the Loan Forgiveness Covered Period or, if applicable the Alternative Payroll Covered Period

  • Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
  • Payroll tax forms (or equivalent third-party payroll service provider reports) to demonstrate payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941).
  • Tax forms (or equivalent third-party payroll service provider reports) to demonstrate state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
  • Payment receipts, canceled checks, or account statements documenting the amount of any company contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount.
  • If applicable, the 2019 Form 1040 Schedule C submitted with your application.

Full-time employees during the reference period selected by the borrower

  • Documentation verifying the average number of FTEs on payroll per week employed by the borrower during the reference period selected by the borrower for purposes of assessing whether a reduction of the forgiveness amount due to an FTE reduction was required.
  • Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. (Documents submitted may cover periods longer than the specific time period.)

Non-payroll expenses

  • Business mortgage interest payments: Copy of lender amortization schedule and receipts or canceled checks verifying eligible payments from the Loan Forgiveness Covered Period; or lender account statements from February 2020 and the months of the Loan Forgiveness Covered Period through one month after the end of that period verifying interest amounts and eligible payments.
  • Business rent or lease payments: Copy of current lease agreement and receipts or canceled checks verifying eligible payments from the Loan Forgiveness Covered Period; or lessor account statements from February 2020 and from the Loan Forgiveness Covered Period through one month after the end of that period verifying eligible payments.
  • Business utility payments: Copy of invoices from February 2020 and those paid during the Loan Forgiveness Covered Period and receipts, canceled checks, or account statements verifying those eligible payments.

Fore more information about PPP loan forgiveness documentation, please refer to the SBA’s PPP loan forgiveness application.

How much of my loan is eligible for forgiveness?

The amount of loan forgiveness can be up to the full principal amount of your loan and any accrued interest. The actual amount of loan forgiveness depends on how and when you spend your loan proceeds. Only eligible costs paid during your loan forgiveness covered period and certain eligible costs incurred but not paid during that period are eligible for forgiveness. Other criteria apply. For example, salary, wage, or headcount reductions may reduce the forgivable amount for some borrowers.

How should I spend my loan if I want it to be forgiven in full?

  • Use 100% of your PPP funds within your loan forgiveness covered period
  • Use 60% or more of PPP funds on eligible payroll costs
  • Use up to 40% of PPP funds on other eligible non-payroll costs

If you use less than 60% of your PPP funds on eligible payroll costs, you will only be eligible for partial loan forgiveness. Please note that your total forgiveness amount depends on other criteria as well. For example, salary, wage or headcount reductions during the loan forgiveness covered period (or, if applicable, your alternative payroll covered period) may reduce the forgivable amount for some borrowers.

Do I qualify for loan forgiveness under the Paycheck Protection Program if I laid off workers?

Small business owners may be eligible for loan forgiveness even if they’ve laid off workers between February 15, 2020, and April 26, 2020, as a result of the coronavirus. However, keep in mind that reductions to headcount may reduce your forgiveness amount if the average weekly number of full-time equivalent employees you employ during your Loan Forgiveness Covered Period (or, if applicable, Alternative Payroll Covered Period) is less than the average weekly number of full-time equivalent employees between one of the following reference periods:

  • February 15, 2019 and June 30, 2019, or
  • January 1, 2020 and February 29, 2020

 

Seasonal employers may choose either of the above reference periods or any consecutive twelve-week period between May 1, 2019 and September 15, 2019.

SYour loan forgiveness amount will not be reduced based on headcount reductions if:

  • Reductions made between February 15, 2020, and April 26, 2020, are reversed by the earlier of (a) the date you submit your application for loan forgiveness or (b) December 31, 2020
  • Your business was unable to operate between February 15, 2020, and the end of your covered period at the same level has before February 1, 2020, due to compliance with certain federal requirements or guidance issued between March 1, 2020, and December 31, 2020, related to maintaining standards of sanitation, social distancing, or other work or customer safety requirements related to COVID-19.

Do loans under the Paycheck Protection Program cover paid sick leave?

If you qualify for the Paycheck Protection Program, you can use your loan to pay employer-provided parental, family, medical, and sick leave and other forms of paid time off. Paycheck Protection Program loans don’t cover emergency paid sick and family leave provided by the Families First Coronavirus Response Act (FFCRA).

What interest rates will be charged?

The interest rate of 1% for PPP loans.