PAYCHECK PROTECTION PROGRAM: How much can I BORROW?

Loans can be up to 2.5 x the borrower’s average monthly payroll costs, not to exceed $10 million.

How do I calculate my average monthly PAYROLL COSTS?

INCLUDED  Payroll Cost:
1. For Employers: The sum of payments of any compensation with respect to employees that is a:

•  salary, wage, commission, or similar compensation;
  
•  payment of cash tip or equivalent;
•  payment for vacation, parental, family, medical, or sick leave
•  allowance for dismissal or separation
•  payment required for the provisions of group health care benefits, including insurance premiums
•  payment of any retirement benefit
•  payment of state or local tax assessed on the compensation  of the employee 

2. For Sole Proprietors, Independent Contractors, and Self-Employed  Individuals: The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in one year, as pro-rated for the covered period.
 
​EXCLUDED  Payroll Cost:

1.  Compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the period February 15, to June 30, 2020
2.  Payroll taxes, railroad retirement taxes, and income taxes
   
3.  Any compensation of an employee whose principal place of  residence is outside of the United States
   
4.  Qualified sick leave wages for which a credit is allowed under section 7001 of the  Families First Coronavirus Response Act (Public Law 116– 5 127); or qualified family leave  wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act.

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NON SEASONAL EMPLOYERS:
Maximum loan =
2.5 x Average total monthly payroll costs incurred during the year prior to the loan date

For businesses not  operational in 2019:
2.5 x Average total monthly payroll costs incurred for January and February 2020

SEASONAL EMPLOYERS:
Maximum loan =
2.5 x Average total monthly payments for payroll costs for the 12-week period beginning February 15, 2019 or March 1, 2019 (decided by the loan recipient) and ending  June 30, 2019

• Payments deferred for  six months
  • 0.50% fixed interest rate
  • Loan is due in two years
  

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About the Coronavirus Aid, Relief, and Economic Security (CARES) Act 
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. The administration has released initial guidelines; they are available at www.treasury.gov.

Small businesses and sole proprietors can begin applying on  April 3.
Independent contractors and self-employed individuals can apply beginning on April 10.

Source: U.S Chamber of Commerce Coronoavirus Emergency Loans Small Business Guide & Check List ​​​

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Additional Paycheck Protection Program Resources: 

• Are You Eligible? 
• What will lenders be looking for? 
• Will this loan be FORGIVEN? 
• Small Business Owners Guide to the CARES Act 
• Delaware County Chamber of Commerce COVID-19 Resource Page