FAQ About Paycheck Protection Program (PPP) Loans


SBA.com ® Frequently Asked Questions About Paycheck Protection Program (PPP) Loans:


1. Does the PPP lender need to be able to replicate the borrower’s payroll calculations?

2. Do small business concerns need to have less than 500 employees to be qualified for the PPP?

3. Do businesses need to qualify as a small business concern in order to participate in PPP?

4. Does the PPP lender need to confirm if the borrower has any affiliates whose employees must be included in the borrower’s count of employees

5. Are borrowers required to apply SBA’s normal affiliation rules under existing U.S. SBA regulations?

6. If a minority shareholder irrevocably gives up rights, is it still considered to be an affiliate of the business?

7. Are benefits such as healthcare, 401k, and payment of state and local taxes included in the $100,000 per employee cap?

8. Do PPP Loans cover paid sick leave?

9. If my business is seasonal, will I be able to use more relevant and season-based data to determine PPP needs?

10. What if a borrower contracts a third party payer such as a Professional Employer Organization (PEO) to process payroll and report payroll taxes?

  • There should be proper documents that you can obtain from your payroll provider that can be used in these circumstances.
  • Read more about Outsourcing Payroll PEO

11. May lenders accept signatures from a single individual who is authorized to sign on behalf of the borrow of a PPP Loan?

12. Are convicted felons eligible for the PPP?

13. Can lenders use their own online portals to collect the necessary information and documents?

14. What time period should borrowers use to determine their number of employees and payroll costs to calculate their maximum loan amounts?

15. Are borrowers able to include payments made to independent contractors in calculations of payroll costs?

16. Are federal taxes included in the payroll costs used to calculate the maximum loan amount?

17. Do lenders need to make any changes to their loan applications that were already filed before the updated guidance was released recently?

18. If a lender is working with an existing customer, are they required to collect and certify information they already have from before?

19. Do lenders have to use a promissory note provided by SBA or may they use their own?

20. The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?

  • The date of the first disbursement of funds, or the first day of your first pay period following disbursement.
  • Read more about Eight Week Forgiveness Period

21. Do lenders need a separate SBA Authorization document to issue PPP loans?

22. Will non-bank lenders who apply for PPP Lending automatically be enrolled if they meet all applicable criteria?

23. How do the $10 million cap and affiliation rules work for franchises?

  • If a franchise brand is listed on the SBA Franchise Directory, each of the franchisees that meet PPP criteria can apply for a PPP loan. The $10 million cap applies separately to each franchisee.
  • Read more about 10 Million Cap Affiliation Rules

24. How do the $10 million cap and affiliation rules work for hotels and restaurants?

  • Any single business entity (including hotels and restaurants) that is assigned an NAICS code beginning with 72 and employs no more than 500 employees per physical location is eligible to receive a PPP loan even if its affiliated companies have more than 500 employees. For these companies, the $10 million cap and the 500 employee limit applies to each individual entity and not each entity in combination with its affiliates companies..
  • Read more about 10 Million Cap Affiliation Rules – Hotel & Restaurants

25. Does the information lenders are required to collect from PPP applicants regarding every owner who has a 20% or greater ownership stake in the applicant business satisfy a lender’s obligation to collect beneficial ownership information under the Bank Secrecy Act?

  • Lenders with existing customers who have already verified the necessary information do not need to re-verify the information. Lenders with new customers will need to make a verification..
  • Read more about Lender Obligation – Beneficial Ownership

26. Do the SBA’s Standards of Conduct Committee (SCC) regulations for SBA Assistance apply during a disaster?

27. Does the SBA’s Standards of Conduct Committee (SCC) require a written statement of no objection from the pertinent Department or military service before providing SBA Assistance?

28. Can Lenders submit PPP loan applications to the SBA before the lender has reviewed the required borrower documentation and calculation of payroll costs?

29. Can lenders use scanned copies of documents or E-signatures or E-consents permitted by the E-sign Act?

30. Can a lender sell a PPP loan into the secondary market?

31. Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

32. Does the cost of a housing stipend or allowance provided to an employee as part of compensation count toward payroll costs?

33. Is there existing guidance to help PPP applicants and lenders determine whether an individual employee’s principal place of residence is in the United States?

34. Are agricultural producers, farmers, and ranchers eligible for PPP loans?

35. Are agricultural and other forms of cooperatives eligible to receive PPP loans?

36. Do I count both full-time and part-time employees to determine if I am under the 500 employee maximum threshold?

  • For the purposes of loan eligibility, yes. For the purposes of loan forgiveness, no.
  • Read more about 500 Employee Eligibility

37. Do businesses owned by private companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

  • See response to FAQ #31.

38. PPP Loans are only available to applicants that were in operation on February 15, 2020. Do I qualify for a PPP loan if my business was in operation on this date but subsequently had an owner change?

39. Will SBA review individual PPP loan files?

40. Will a borrower’s PPP loan forgiveness amount be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?

41. Can a seasonal employer using an alternative time period for the purposes of calculating their loan make all the required certifications on the Borrower Application Form?

42. Can a seasonal employer using an alternative time period for the purposes of calculating their loan make all the required certifications on the Borrower Application Form?

43. PPP borrowers have to certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” The SBA will assume that anyone who applied for a PPP loan before April 24, 2020 and who repays it in full by May 7, 2020 has made this certification in good faith. Will the SBA allow for extension of the May 7, 2020 date so that borrowers who repay after May 7, 2020 are also assumed to have made the certification in good faith?

44. How do SBA’s affiliation rules at 13 C.F.R. 121.301(f) apply with regard to counting the employees of foreign and U.S. affiliates?

  • An applicant must count all of its employees and the employees of its U.S. and foreign affiliates, unless they have an exception to the affiliation rules..
  • Read more about Foreign Affiliation Rules

45. Is an employer that repays its PPP loan by the safe harbor deadline (May 14, 2020) eligible for the Employee Retention Credit?

46. How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

  • Anyone who received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan in good faith. PPP loans in excess of $2 million will be subject to review by SBA for compliance.
  • Read more about SBA Good Faith Review

47. PPP borrowers have to certify in good faith that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?

48. What is the deadline for lenders to complete the initial SBA Form 1502 reporting process?


Additional Questions and Clarifications

Do loans need to be funded within 10 days of approval?

Yes, but it depends on when you received your “PLP” number.If you received your PLP number on or before April 28, 2020, your lender has 10 calendar days from April 28, 2020 to fund your loan. If you received your PLP number anytime after April 28, 2020, your lender has 10 calendar days from the date that you received your PLP number to fund your loan. Note that funds cannot be dispersed until the lender has received all your paperwork. If you don’t have all your paperwork submitted to your lender within 20 days of receiving your PLP number, your application will be cancelled. Read more here.


SBA.com® Frequently Asked Questions

How does SBA.com® help people get PPP loans?

SBA.com® has a vast network of lenders and partners that can help fund and service small business loans, including the PPP loans covered in the CARES act. SBA.com® makes it easy for small businesses, independent contractors, & religious organizations to request PPP loans and possibly get matched with a lender that can assist them.

How do I get started applying for a PPP loan?

There are many ways to apply for a PPP loan. One way would be to apply with your relationship lender, bank, or credit union.

Are you related to SBA.gov or any government entity?

Small Business Advice (or SBA.com®) is privately owned and is not affiliated with SBA.gov or any government agency or entity.

Who is processing the PPP loan requests from SBA.com®?

Currently our partner processes a majority the PPP loan requests

Does SBA.com® charge me a fee?

No, you will not be charged a fee from SBA.com® for applying.

Why is SBA.com® doing this service?

SBA.com® knows that small businesses need advice and help during these turbulent times. It is our goal to provide resources for small businesses in need to secure funding in an efficient manner.

Are you being compensated in any way?

Yes, SBA.com® is compensated for advertising various loan agent & partner services. Please see our Advertiser Disclosure for more information.

How many hours have you been spending on this a day?

Our team has been working tirelessly, 24/7, to provide up-to-date information on small business loans, including funding and loan products related to the 2020 CARES Act. We estimate that, in aggregate, our team has spent over 3000 hours of time researching, writing, and providing the best user experience possible on SBA.com®

Should I apply at my bank or with an existing relationship?

That is completely up to you. If you would like, you can consult with your existing contacts at your financial institution and ask them if they are a good fit for the product that you need.

Can I get more than one loan?

No, with the current rules in place, it is our understanding that you can only get one loan.

I requested at my bank and do not have the funds yet can I use your service as well in order to be connected to an SBA approved PPP lender?

Yes, you can still use our service even if you have already requested funds through your bank. Remember you can only take one PPP loan per entity.

What documents do I need to upload if I am a PPP applicant small business?

The documents needed are dependent on the lender that you choose. If you apply for funds through SBA.com® we typically require: 1) Payroll reports for 2019 and all available months of 2020 2) 941 Quarterly Tax Filings for all 4 quarters of 2019 and Q1 of 2020 3) 944 Annual Tax Filings for 2019 4) ID Verification

I am a 1099 Independent contractor. What documents do I need to complete?

Again, the documents required are dependent on your lender. If you apply through our form, the documents needed include: 1) 1099-MISC 2) Income and expense reports for 2019. If you are self-employed you will need to provide: 1) 2019 IRS 1040 Schedule C 2) 1099-MISC for each self-employed owner 3) Income and expense reports for 2019

I have some breaking news I want to send your way, how can I do that?

Feel free to contact us here: https://www.sba.com/contact-us/

How do I login to my borrower portal?

You will have to first request a password reset by submitting your email address in the form located here: https://submit.sba.com/bp/reset. After you click “Send Instructions” you will be sent an email with your login details. You may then log into the borrower portal.

Can I call someone if I filled out the form?

Yes, you may call our customer support line at +1 (844) 478-0366 but be advised, we do not have any information on the status of your individual PPP or EIDL loan. If you began a PPP request through SBA.com®, you can reach out to your assigned lender or our referral partner (855-853-6346 or customerservice@lendio.com) for more information on the status of your request.

What’s the main status page?

Our Request Status Resource page is where you can get the latest updates on the PPP program as well as information on how to check the status of your loan request. You can visit this resource here: https://www.sba.com/status/