CARES Act: SBA Paycheck Protection Program (PPP)

UPDATE 4/2/2020: For the most current official information, please visit the U.S. Treasury Department’s Assistance For Small Businesses site. 


With the recent disruption to businesses, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed by President Trump on March 27, 2020.  This Act includes individual rebates, small business loans, increased unemployment benefits and tax breaks that will help to stimulate the economy and keep businesses moving forward during this time of crisis.


As part of the CARES Act, the Small Business Administration 7(a) Program (SBA Paycheck Protection Program or PPP) was introduced.  Eligible small business owners, including self-employed and nonprofit organizations, may use the loans to help cover their payroll costs, rents, utilities and other expenses. 


Generally, businesses can apply for the loan by contacting their Relationship Manager of their bank.  They will need the following documents:

      1. SBA 1919 form – waiting on this “short version” to be released – not available yet.
      2. SBA certification form – will aid with loan eligibility and certification of borrower – not available yet.
      3. Beneficial Ownership form and Certification of Beneficial Owners – Also include a copy of the IDs (driver’s license, passport) for any owners and the signer. 
      4. Corporate Docs
        • LLC:  Articles of Organization and Operating Agreement (plus Amendments)
        • Corporation:  Articles of Incorporation and By-Laws
        • Partnership:  Partnership Agreement

In addition, the Small Business Administration Emergency Injury Disaster Loan 7(b) Program (SBA EIDL Program) was introduced.  This loan may not offer as much as the PPP loan, but a small business owner may receive an emergency grant of up to $10,000 to be used for authorized costs, which the SBA must distribute within 3 days.


Since the PPP and EIDL loans were introduced on March 27, there have been many questions from business owners on how it will help them. Additional guidelines are currently being written by the SBA and will be released to approved lenders soon via a Procedural Notice that will help to clarify many questions by providing final guidelines and “program rules”.


Click here for a summary of the PPP and EIDL programs. 


You may also find this guide from the U.S. Senate Committee on Small Business & Entrepreneurship a helpful resource.


Click here to view the Paycheck Protection Program Application Form.


It is important that business owners proceed with caution and discuss the loans with their trusted business advisors as there is the potential for fraud and scams. No application process can begin until the approved lender receives the Procedural Notice.


This is a good time to consult your business advisor and make sure you have all the required loan application documents in order. The SBA has up to 30 days following the enactment of the Act to issue regulations implementing and providing guidance. This may delay loan approval and disbursement or modify/waive certain loan requirements.

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