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.

• 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

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.