SBA Paycheck Protection Program (PPP)

There are two types of loans in the PPP 2^nd round – first draw loans, and second draw loans. If you are a first time PPP borrower (have not previously had a PPP loan), you will apply using the 1^st draw loan application. If you currently have a PPP loan or have had a PPP loan forgiven, you will apply using the 2^nd draw loan application.

Eligibility requirements for 1^st draw loans:

– Must have under 500 employees or meet the SBA’s alternative industry size standards

– Must have been open on or before 2/15/2020

Eligibility requirements for 2^nd draw loans:

– Must have under 300 employees or meet the SBA’s alternative industry size standards

– Must have been open on or before 2/15/2020

– Must have experienced a decrease in revenue in 2020 by at least 25% when compared to a part or all of 2019

– Must have spent all PPP funds from the previous loan

*Please note, you are NOT required to obtain forgiveness prior to applying for a 2^nd draw PPP loan.

Generally, loan amounts are calculated using the following formula:

Average monthly payroll for EITHER 2019 or 2020 X 2.5 = Maximum Loan Amount

If you received an EIDL between 1/31/2020 and 4/3/2020, you may elect to refinance the remaining loan amount as an addition to your PPP loan. Please note, this is only the loan portion of the program and does not include the advance as that does not have to be repaid.

Additionally, if you are in an eligible NAICS classification (classifications begining in "72") , your loan amount may be calculated at 3.5X rather than 2.5X.

Documents needed for 1^st draw PPP loans:

• Driver’s license of applicant
• Either 2019 OR 2020 payroll records supporting the average monthly payroll input by applicant (the applicant can elect which year to provide payroll records from)
• Documents verifying that you were in business on or before February 15, 2020

If you are a small business with employees, please submit payroll processor reports or 941s for the entire year. For Independent Contractors, Sole Proprietors, and Self-Employed without employees, payroll records would wither be a 2019 schedule C or 2020 schedule C or 1099 form. If you elect to use 2020 as your verification year and have not yet filed 2020 taxes, you may fill out the 2020 schedule C as if you were going to file it and submit that.

Documents needed for 2^nd draw PPP loans:

• EITHER your 2019 business tax return (in full) OR 2019 Profit and Loss statement (quarterly) OR 2019 quarterly 941s
• EITHER your 2020 Profit and Loss statement (quarterly) OR 2020 quarterly 941s
• Either 2019 OR 2020 payroll records (the applicant can elect which year to provide payroll records from)

If you are a small business with employees, please submit payroll processor reports or 941s for the entire year. For Independent Contractors, Sole Proprietors, and Self-Employed without employees, payroll records would wither be a 2019 schedule C or 2020 schedule C or 1099 form. If you elect to use 2020 as your verification year and have not yet filed 2020 taxes, you may fill out the 2020 schedule C as if you were going to file it and submit that. If you elect to use 2019 as your verification year, and PeopleFund already has your information on file, you will not need to upload any payroll documentation.

– Eligible payroll costs (must be at least 60% of loan proceeds)

– Mortgage interest

– Rent/lease

– Utilities

– Refinancing and SBA EIDL made between 1/31/2020 and 4/3/2020

– Covered operation expenditures*

– Covered property damage costs related to damage, vandalism, and looting that occurred in 2020 and was not covered by insurance

– Covered supplier costs*

– Covered worker protection expenditures*

*A detailed list of all covered costs can be found on page 49 of the following Internal Final Rule: click here to read more.

Generally, forgiveness requires that you 1) spend your PPP funds only on eligible expenses and 2) that your document proof of your eligible expenses in the appropriate way. Forgiveness may also require that you do not decrease employee headcount, salary, hours, or wages or hire/attempt to hire back employees that were laid off or furloughed among other requirements. Additionally, you MUST spend at least 60% of the funds on payroll in order for forgiveness not to be reduced.

Documents you may need for forgiveness include payroll reports, state and federal tax filing statements, benefit statements, mortgage interest or rent, lease, or utility invoices or receipts, documents establishing that mortgage, lease, and utility agreements were in place prior to 2/15/2020, and anything additional that may help establish proof of funds spent.

You may apply for forgiveness through Colorado Enterprise Fund once you have spent your PPP funds or at the end of your spending period – an elected period either 8 weeks or 24 weeks from the date of your loan disbursement or alternative covered period.

This is a loan at 1% interest for a maximum of 5 years.

If you submit to your lender a loan forgiveness application within 10 months after the end of your loan forgiveness covered period, you will not have to make any payments of principal or interest on your loan before the date on which SBA remits the loan forgiveness amount on your loan to your lender (or notifies your lender that no loan forgiveness is allowed)