***CEF has closed their application for the Paycheck Protection Program (PPP) to allow for processing time by the SBA’s new deadline of August 8th, 2020.
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 on the PPP loans and the CARES Act? View our CARES Act and PPP summary here.
PPP Forgiveness Process (Updated July 2, 2020)
As of July 2, 2020 the SBA/Treasury has not issued any definitive guidance regarding the processing of PPP forgiveness applications by the lenders administering the program (i.e. CEF). CEF will provide PPP forgiveness instructions to all CEF PPP borrowers as soon as guidance and systems are provided by the SBA/Treasury. Please note, there is at least a 10 month window of time for which each PPP borrower has to submit their PPP forgiveness application so, once guidance/systems are in place, there will be adequate time to complete the forgiveness process.
As a CEF PPP borrower there is no immediate action for you to take, regarding forgiveness, other than to continue to check back here and in your email for any updates. You can also check the SBA PPP website for any updates they may post. On the SBA website you will find links to the forgiveness application forms the SBA has published however, we ask that you do not submit these to us. You may study them as guidance, however, we will email you the steps and forms from our systems to help streamline the forgiveness process as best we can for you.
Again, please do not send any completed SBA forms to CEF. We will provide further instructions and guidance for you as soon as we receive that information from the SBA.
Paycheck Protection Program Resources:
- CEF Webinar Recording: How to Prepare Now for Maximum PPP Loan Forgiveness
- CEF Q&A on Maximizing PPP Loan Forgiveness
- CEF PPP Loan Forgiveness Summary
- American Institute of CPAs (AICPA) PPP Loan Forgiveness Calculator
- SBA PPP Loan Forgiveness Application (Blank Form)
- Forbes Article: What You Can Do Now To Maximize Paycheck Protection Loan Forgiveness
- CEF CARES Act EIDL & PPP Summary
- *New* from SBA & Treasury: Frequently Asked Questions (FAQs) as of 5/6/2020
- Sample Borrower Application
- PPP Borrower Factsheet
- How to Calculate Loan Amounts
- More on PPP from U.S. Department of the Treasury
- More on PPP from U.S. Small Business Administration
- Interim Final Rule Additional Criterion For Seasonal Employers
- Interim Final Rule on Disbursements
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 also 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.
PPP Program and App FAQs
- Who can apply?
- What makes a loan eligible for forgiveness?
- What can the funds be used for?
- What is excluded from payroll costs?
- How do you calculate the loan amount?
- What documents do applicants need to submit?
- How do you calculate the max amount of the loan for a sole proprietor (with employees)?
- Do independent contractors count as employees?
- Can I apply for the PPP through more than one lender?
- If I am a nonprofit, how do I complete the applicant ownership section?
PPP Loan Forgiveness FAQs
- What can I use the PPP funds for?
- What qualifies as ‘‘payroll costs?’’
- Is there anything specifically excluded from payroll costs?
- How can I have most or all of the PPP funds forgiven?
- If we don't meet the full payroll threshold within the 8-week period, can our loan be partially forgiven for the amount of payroll that we used?
- Will we be taxed on the PPP money?
- When do payments need to be made to qualify for PPP loan forgiveness?
- For loan forgiveness, do I have to keep the same amount of part time employees or full time equivalent? I'm reading conflicting reports.
- Can you confirm that our required head count and payroll $ requirement will be reduced for any documented employees who quit or refuse to return to work?
- Do we figure FTE's from 1/20/2020-2/29/2020 or 2/15/2019-6/30/2019? Why is this so complicated?
- Exactly what documentation will be requested for determination of forgiveness. It would be great to know now, so that as we move forward after having received the PPP loan, we can be sure to document everything properly.
- I've heard that we should open a separate bank account and put this money in it, so we can clearly show that it went to payroll expenses. Is that a good idea?
- What happens if my PPP loan is not fully forgiven?