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SBA Paycheck Protection Program (PPP)

CEF's application for the Small Business Administration's Paycheck Protection Program closed August 8th, 2020. Find updates, resources, and more below.
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SBA Paycheck Protection Program (PPP) | Colorado Enterprise Fund

The Paycheck Protection Program (PPP), authorized under the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. 

 

*CEF's PPP Forgiveness Process Update (as of Dec 1, 2020)

CEF will begin accepting PPP Forgiveness applications for loans that were for $50,000 and under on December 1, 2020. Starting on December 1st, we will send an email invitation to submit your PPP Forgiveness application. The process will take some time and we plan to have all email invitations sent to PPP borrowers by December 31, 2020. If you do not have your email and your PPP loan was for $50,000 or less, click here to request your forgiveness application form.

Request Your Forgiveness Form Here (Loans $50k and Under)

If you received a PPP loan for more than $50,000, we will email you a link to your appropriate documentation in the near future. Please keep an eye on your email inbox or on this page for updates coming soon.  

View our updated list of PPP Forgiveness FAQs below.

PPP Loan Forgiveness FAQs

Colorado Enterprise Fund (CEF) will begin accepting applications on December 1st, 2020. We will be sending e-mails with application links to business owners in the first two weeks of December, starting with business owners who were approved for PPP loans that were less than $50,000. 

SBA rules allow CEF 60 days to evaluate your application and make a decision. You will hear from us when we have made the decision or have questions. 

Within 10 months after the last day of the borrower’s loan forgiveness Covered Period. In no event may the Covered Period extend beyond December 31, 2020. Please see the “for what time period must I show documentation” question below for the definition of Covered Period. See question 4 of the Treasury Department FAQs for more details.   

You must show documentation for the “Covered Period”. The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP Loan Disbursement Date, or (2) if the Borrower received its PPP loan before June 5, 2020, the Borrower may elect to use an eight-week (56-day) Covered Period. For example, if the Borrower is using a 24-week Covered Period and received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4. In no event may the Covered Period extend beyond December 31, 2020. 

It depends. There are three different forms, each of which has different requirements for backup documents: 

  1. SBA Form 3508S has the fewest calculations. You can use the backup documents listed on the instructions of the 3508S if your PPP loan amount was $50,000 or less and you are exempt from the $2 Million PPP loan total from affiliates rule listed at the top of the 3508S instructions form here.  
    Borrowers that use SBA Form 3508S (or lender equivalent) are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. SBA Form 3508S also does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process.  
     

  1. SBA Form 3508EZ has some additional requirements. You may use the 3508 EZ if you didn’t have employees, or if you maintained the same number of Full Time Equivalents (FTEs) at 75% or more during the covered period,  full details on qualifying requirements are here 

 If you qualify for the 3508 EZ , the following documentation must be submitted to the lender: 

Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following: a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees. b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period: i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount. d. If you checked only the second box on the checklist on page 1 of these instructions, the average number of full-time equivalent employees on payroll employed by the Borrower on January 1, 2020 and at the end of the Covered Period.  

Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period. a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments. b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments 

If you do not qualify for the 3508S or the 3508 EZ, the form 3508 instructions provide the additional documentation required. 

Yes. Per current SBA guidance, any Economic Injury Disaster Loan (EIDL) advance amount you received will be deducted from your forgiveness amount by the SBA during the settlement process. Please note that an EIDL advance is different than an EIDL Loan.  See question 1 of EIDL FAQs on P. 11 of PPP Forgiveness FAQs for more details.  

No. PPP loan payouts have been determined by the IRS not to be taxable income and expenses covered by the PPP loan distribution are not tax-deductible. See IRS Publication 2020-32
  1. Approved in Full: Lender approved in full the forgiveness amount requested by borrower and the forgiveness amount requested by Lender equals that amount. 

  1. Approved in Part: Lender did not approve the full forgiveness amount requested by borrower and the forgiveness amount requested by Lender is less than the forgiveness amount requested by borrower. 

  2. Denied: Lender denied the entire forgiveness amount requested by the borrower. 

Note that CEF will not make an Approved in Part of Denied decision without communicating with you to ensure relevant facts are taken into account prior to our decision. 

Yes, Congress continues to consider changes to the program as part of broader COVID-19 relief programs. When we receive new guidance or legislation is enacted, we will make any necessary updates to our loan application, loan agreement, and forgiveness application process. 

PPP Overview

The Paycheck Protection Program (PPP), authorized under the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Need more information about the CARES Act and the PPP? View our CARES Act & PPP Summary via the link below.

 

CARES Act and PPP Summary

 

Fully Forgiven

Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

  • Loan payments will be deferred for six months
  • No collateral or personal guarantees are required
  • Neither the government nor lenders will charge small businesses any fees.

Must Keep Employees on the Payroll—or Rehire Quickly

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. If full-time headcount declines, or if salaries and wages decrease, forgiveness will be reduced.

All Small Businesses Eligible

Small businesses (including nonprofits) with 500 or fewer employees are eligible. Businesses with more than 500 employees are eligible in certain industries.

Thanks to Our Lending Partners Who Helped Make This Possible

 

"Once again, CEF has come to the rescue. Because of their swift action and personally helping us navigate the complex government requirements [for the PPP], we now have the funds to re-open in 30 days with all nine employees still on board."

Diana Gadison | Executive Director | Early Success Academy

PPP Program and Application FAQs

Small businesses and nonprofits – 501(c)(3)s, including religious organizations, with 500 or fewer employees; self-employed individuals and independent contractors. Business in certain industries can have more than 500 employees if they meet applicable SBA size standards for those industries. 

For purposes of loan eligibility, the CARES Act defines the term employee to include “individuals employed on a full-time, part-time, or other basis.” A borrower must, therefore, calculate the total number of employees, including part-time employees, when determining their employee headcount for purposes of the eligibility threshold.

This loan has a maturity of 2 years and an interest rate of 1%. The maximum loan amount is up to $10 million. (Note: Colorado Enterprise Fund’s PPP program has a maximum loan amount of up to $250,000.)

Businesses must be operating with paid employees on February 15, 2020; be able to certify the need for funds during the COVID-19 emergency, and be able to certify the use of funds to retain workers.

Applicant/Borrower will not be responsible for any loan repayment if:

  • Employee numbers and compensation levels are maintained; and
  • A minimum of 75% of the loan proceeds are to go towards payroll costs (and the balance towards eligible non-payroll costs.

Eligible payroll costs:

  • Salary, wages, commissions, and tips (capped at $100,000 on an annualized basis for each employee);
  • 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; and payment of any retirement benefit; and
  • State and local taxes assessed on compensation.
     

Eligible non-payroll costs:

  • Rent
  • Mortgage interest payments (but not mortgage prepayments or principal payments)
  • Utility payments
  • Interest payments on any other debt obligations that were incurred before February 15,2020; and/or
  • Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020
  • If Applicant received an SBA EIDL loan from January 31, 2020 through April 3, 2020, Applicant can apply for a PPP loan
  • If Applicant’s EIDL loan was not used for payroll costs, it does not affect Applicant’s eligibility for a PPP loan
  • If Applicant’s EIDL loan was used for payroll costs, Applicant’s PPP loan must be used to refinance its EIDL loan
  • Process from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on this PPP loan
  •  
  • Any compensation of an employee whose principal place of resident is outside of the US;
  • The salary, wages, commissions and tips paid to any individual employee in excess of an annual salary of $100,000, prorated as necessary;
  • Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and
  • Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act
  • Step 1: Total all eligible payroll costs for the last 12 months for employees whose principal place of residence is the US
  • Step 2: Subtract any salary, wages, commissions, or tips paid to all employees in excess of an annual salary of $100,000
  • Step 3: Calculate average monthly payroll costs: Divide Step 2 by 12
  • Step 4: Multiply Step 3 by 2.5
  • Step 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)
  • Picture of primary owner/applicant Drivers License
  • Month end detailed payroll report for February 2020
  • Payroll Tax form 940 from 2019
  • Latest form 941 filed
  • Articles of Organization Schedule C (if you are a sole proprietor)
  • Most recent personal Tax Return
  • Most recent business Tax Return

If you have employees, the following methodology should be used to calculate your maximum loan amount:

  • Step 1: Compute 2019 Payroll by adding the following:
  • Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, set this amount at zero.
  • 2019 IRS Form 941 Taxable Medicare wages & tips (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 United States; and
  • 2019 employer health insurance contributions (health insurance component of Form 1040 Schedule C line 14), retirement contributions (Form 1040 Schedule C line 19), and state and local taxes assessed on employee compensation (State Unemployment Tax Act or SUTA from state quarterly wage reporting forms).
  • Step 2: Calculate the average monthly amount (divide the amount from Step 1 by 12).
  • Step 3: Multiply the average monthly amount from Step 2 by 2.5.
  • Step 4: Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
     

Documents you must provide:

  • IRS Form 1040 Schedule C if the applicant is a sole proprietor (with employees) for the following period ending December 31, 2019 (whether filed or not)
  • IRS Quarterly Form 941 (or equivalent payroll record)
  • State Unemployment Tax Act or SUTA from state quarterly wage reporting form
  • Evidence of any retirement and health insurance contributions
  • Payroll statement or similar doc from pay period that covered February 15, 2020 to establish you were in operations on or around February 15, 2020.
No. Independent contractors can apply for a PPP loan on their own so they do not qualify for purposes of a borrower’s PPP loan forgiveness.  (Unless you are an independent contractor applying for yourself.)

If you currently have a pending application with another lender, it may be faster to pursue an existing application rather than submit a new one with Colorado Enterprise Fund.

We encourage you to reach out to your lender to confirm that your application is still in the pipeline for submission. However, if you have not heard back from your lender or have no confirmation of your pipeline status, or in other words, consider your application “abandoned”, you may submit another application with us.

If you are a nonprofit 501(c) (3) organization, here are the steps to follow in the Owner/Authorized Signer tab of the application:

Step 1: Under “Owner Name”, put in the name of the authorized signer for the entity

Step 2: Select the “business entity” option (not “individual”)

Step 3: Enter the authorized signer’s title (e.g. President, Executive Director, etc.)

Step 4: Provide the TIN for the entity

Step 5: Under owner’s SSN, provide the SSN and date of birth for the authorized signer. You will also need to upload a photo ID for the authorized signer.

Step 6: Provide authorized signer’s address

Step 7: Provide name, address and date of birth for any additional authorized signers or officers for the organization

Step 8: Upload photo IDs for each listed authorized signer or officer

Step 9: Provide the date of incorporation for your entity and upload formation documents.