U.S. Treasury and SBA’s “CARES Act” Information on “Paycheck Protection Program” for Small Businesses (Updated April 25)

By at 31 March, 2020, 4:44 pm

UPDATED April 14, 2020

SBA’s “Paycheck Protection Program” Applications Will Begin April 3

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed by President Trump on March 27.  (The full text of the legislation is here.)

The U.S. Treasury and Small Business Administration (SBA) have launched “Paycheck Protection Program” (PPP) and CARES Act webpages, which include information for borrowers, lenders and a sample application form that small businesses will use once SBA-approved 7(a) lenders begin taking applications on April 3 (according to the U.S. Treasury).

See the SBA’s PPP page here, and the U.S. Treasury’s CARES Act page here.

The SBA launched a new guidance page here.

NEW on April 24: HOW TO CALCULATE MAXIMUM PPP LOAN AMOUNTSNew guidance from the SBA in consultation with U.S. Treasury (released on the evening of April 24) will, according to the document, “assist businesses in calculating their payroll costs for purposes of determining the amount of a Paycheck Protection Program (PPP) loan businesses can apply for.”

The guidance, formatted in a Q&A format, provides information and steps for a variety of small businesses including: self-employed with no employees; self-employed with employees; documentation  business owners will provided depending on how they report their income; how partnership should apply for PPP loans; how is the maximum PPP loan amount is calculated for S corporations and C corporations; how it is calculated for eligible nonprofit organizations, nonprofit religious institutions, veterans organizations, and tribal businesses; and what other documentation can be provided for the purpose of substantiating the applied-for PPP loan amount.

NEW on April 13: Guidance from the U.S. Treasury released on April 13 about the PPP in Q&A format clarifies other issues with regard to franchises, affiliation and lender responsibilities and protections.

NEW on April 8: The Latest Round of U.S. Treasury Guidance. Another round of guidance was released on April 8, with clarification in some key areas, which can be read by accessing this simple Q & A document.

According to the U.S. Treasury: “Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.”


The Paycheck Protection Program has authorized up to $349 billion toward job retention and certain other expenses for small businesses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

ABOUT CARES ACT: Eligibility and “the rules.” For a top-line overview of the program provided by U.S. Treasury CLICK HERE.

SMALL BUSINESS BORROWERS: If you’re a borrower, information from U.S. Treasury can be found HERE. This link is helpful in filling out your PPP application, determining eligibility, etc.

“Final” Guidance and Rules

NEW: As expected, U.S. Treasury released Interim “Final” Rules on the CARES Act “Paycheck Protection Program” (PPP).  SBE Council has reviewed the rules which can accessed here, and will have forthcoming comments and analysis on them.

NEW Borrower Application: This is Final borrower form for PPP loans (which is submitted to a PPP participating lender participating).

NEW Final Lender Application: Here is the final application form that lenders use for each borrower.


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