• A small business with fewer than 500 employees

• A small business that otherwise meets the SBA’s size standard

• A 501(c)(3) with fewer than 500 employees

• An individual who operates as a sole proprietor

• An individual who operates as an independent contractor

• An individual who is self-employed who regularly carries on any trade or business

• A Tribal business concern that meets the SBA size standard

• A 501(c)(19) Veterans Organization that meets the SBA size standard

  In addition, some special rules may make you eligible:

• If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis

• If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal affiliation rules do not apply

Lenders will also ask you for a good faith certification that:

• Was the borrower in operation before February 15, 2020 and had employees for whom they paid salaries and payroll taxes or paid independent contractors.

• The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations

• The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments

• Borrower does not have an application pending for a loan duplicative of the purpose and amounts applied for here

• From Feb. 15, 2020 to Dec. 31, 2020, the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold emergency loans made between Jan. 31, 2020 and the date this loan program becomes available into a new loan)

If you are an independent contractor, sole proprietor, or self-employed individual, lenders will also be looking for certain documents (final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship.

Loans can be up to 2.5 x the borrower’s average monthly payroll costs, not to exceed $10 million.

A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:

• Payroll costs (using the same definition of payroll costs used to determine loan eligibility)

• Interest on the mortgage obligation incurred in the ordinary course of business

• Rent on a leasing agreement

• Payments on utilities (electricity, gas, water, transportation, telephone, or internet)

• For borrowers with tipped employees, additional wages paid to those employees

The loan forgiveness cannot exceed the principal.

The amount of loan forgiveness calculated above is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.