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business owner

Congress has added more funding for small businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This additional funding mirrors the bill’s original funding requirements and is on a first-come-first-served basis.

In the original outlay of funds, businesses with fewer than 500 employees were eligible to apply for the funds in the form of a loan. If the majority of the funds are used to retain employees (75 percent), the loan would be converted to a grant and the funds would not have to be paid back. The loans are 100 percent federally insured through the US Small Business Administration (SBA).

First Come, First Served

Because the funds for this new program may also run short, business owners should complete the loan application forms and gather the required documentation as soon as possible. The Small Business Administration will stop taking applications as soon as the funds are exhausted. More information on the SBA Paycheck Protection Program (PPP), the loan process, and other issues is available on the US Small Business Administration website.

If you were in business on February 15, 2020, and either had employees for whom you paid salaries and payroll taxes or paid independent contractors as reported on Form 1099-MICS, you are eligible to apply. You are also eligible for the PPP loan if you are an individual who operates under a sole proprietorship or as an independent contractor or an eligible self-employed individual and you were in operation February 15, 2020. Some nonprofit entities, including churches, are also eligible.

You must submit the documentation necessary to establish eligibility. This includes payroll records, payroll tax filings (IRS Form 941 or Form 1099-MISC), or income and expenses from a sole proprietorship.

Borrowers who do not have such documentation must provide other supporting documentation such as bank records sufficient to determine the qualifying payroll amounts. You may be required to submit a copy of your business license(s) or other evidence that the bank or Small Business Administration may require including federal income tax form Schedule C for business or nonprofit certification.

Because this new funding from Congress mirrors the requirements of the original CARES Act, you can find the latest update on the requirements published in the Federal Registry. Also available are federal guidelines for what the funds can be used for, who can qualify for the funds, and how much of the funds must be used for payroll to qualify for the loan forgiveness.


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