PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET: BORROWERS










CARES Act Penalty-Free Distributions

  • Who can apply? Individuals with an IRA, SEP, SIMPLE, 401(k), 457, 403(b), or DB plan
  • Is there a time limit to apply? Yes — End of the year
  • Who do you apply with? N/A
  • Maximum loan size? $100,000 capped at participant’s account
  • Term? End of third calendar year
  • Deferment? End of third calendar year
  • Interest rate? 0% if paid on time
  • Conditional use? None
  • Personal guarantee? No
  • Collateral? No
  • Who is the lender? The plan
  • Do affiliated rules apply? Only with regard to individual max of $100,000 from plan(s)
  • Grant? No
  • Forgiveness? No

CARES Act QRP Loans

  • Who can apply? Individuals with a 401(k), 457, 403(b), or DB plan
  • Is there a time limit to apply? Yes — End of the year
  • Who do you apply with? Plan administrator
  • Maximum loan size? $100,000 capped at participant’s account
  • Term? 6 years
  • Deferment? 1 year
  • Interest rate? Federal AFR rates
  • Conditional use? None
  • Personal guarantee? No
  • Collateral? No
  • Who is the lender? The plan
  • Do affiliated rules apply? Only with regard to individual max of $100,000 from plan(s)
  • Grant? No
  • Forgiveness? No

Economic Injury Disaster Loans (EIDLs)

  • Who can apply? All businesses — including nonprofits, veterans’ organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors — with 500 or fewer employees can apply
  • Is there a time limit to apply? Yes — End of the year for COVID-19
  • Who do you apply with? SBA Direct, unless they transfer to SBA lenders
  • Maximum loan size? $2,000,000
  • Term? 30 years
  • Deferment? 6 months-1 year
  • Interest rate? 3.75% for profit / 2.75% 501(c)
  • Conditional use? Working capital, paid sick leave COVID-19, cost to alleviate specific injury (if PPP loan, cannot use for those purposes)
  • Personal guarantee? No
  • Collateral? None if less than $200,000
  • Who is the lender? SBA Direct unless they transfer to SBA lenders
  • Do affiliated rules apply? Yes
  • Grant? Yes, $10,000
  • Forgiveness? Only on the $10,000 if used for business purpose

Paycheck Protection Program (3P)

  • Who can apply? All businesses — including nonprofits, veterans’ organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors — with 500 or fewer employees can apply
  • Is there a time limit to apply? Yes — June 30, 2020
  • Who do you apply with? SBA-approved lenders
  • Maximum loan size? $10,000,000 or 2.5x average monthly payroll cost as defined in the CARES Act
  • Term? 10 years
  • Deferment? 6 months-1 year
  • Interest rate? 1% for 2 years
  • Conditional use? Retain workers – payroll costs, mortgage interest, rents, utilities (100% payroll + 25% non-payroll)
  • Personal guarantee? No
  • Collateral? None
  • Who is the lender? SBA-approved lenders
  • Do affiliated rules apply? No
  • Grant? No
  • Forgiveness? Yes — 8 weeks following close based on expenses set out in CARES Act

Employment Tax Credit under CARES

  • Who can apply? No application necessary — must calculate based on number of employees and quarterly compensation
  • Is there a time limit to apply? No — Available until the end of the year
  • Who do you apply with? N/A
  • Maximum loan size? N/A
  • Term? N/A
  • Deferment? N/A
  • Interest rate? N/A
  • Conditional use? 50% tax credit on the wages paid to employees from March 13, 2020, to December 31, 2020, up to a maximum of $5,000 credit per employee
  • Personal guarantee? N/A
  • Collateral? N/A
  • Who is the lender? Treasury via payroll tax
  • Do affiliated rules apply? No
  • Grant? N/A
  • Forgiveness? N/A

SBA Express

  • Who can apply? For-profit, US-based business, 2 years in business, need, existing financing
  • Is there a time limit to apply? Yes — end of year for $1,000,000
  • Who do you apply with? SBA-approved lenders
  • Maximum loan size? $1,000,000 (December 31, 2020), then $350,000
  • Term? Up to 7 years
  • Deferment? No
  • Interest rate? Negotiated with lender but max is prime + 2.75%
  • Conditional use? Sound business purposes
  • Personal guarantee? Yes
  • Collateral? Over $25,000, determined by lender
  • Who is the lender? SBA-approved lender
  • Do affiliated rules apply? Yes
  • Grant? No
  • Forgiveness? No



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