SBA Loan Summary

Please read the detail of the Paycheck Protection Loan Program

Below  is  a  summation  of the  details  of  the  Paycheck Protection Loan (PPL).   We  provide  this  information  for  that  purpose only  and  we  recommend  that  all  clients  check  with  their  tax  advisor  and  or  legal  counsel  with  regards  to  specifics  of  this  program.   We STRONGLY  encourage  you  to  act  on  this  immediately  as  the  demand  will  be  unprecedented.    Time  is  your  enemy  -  contact  your  local  SBA  lender  today  -  many  many  banks  are  SBA  certified  and  likely  the  bank  you  do  business  at.    Act  NOW!   

The  details:

In general, any business (including sole proprietors) or non-profit organization may  qualify  if they  meet  the  following:

i.) was in operation on 2/15/2020, and

ii.) has fewer than 500 employees, or

iii.) has more than 500 employees, but has an NAICS code beginning

with 72 and has fewer than 500 employees per physical location (generally hotels and hospitality businesses)

Loan  Purpose  and  Details:   

The maximum loan amount is the lesser of :

i.) $10 million, or

ii.) 2.5x average monthly payroll expenses for the preceding 12

months. Essentially 2.5 months of payroll expenses. If the business is a seasonal employer, the amount will be 2.5x the average monthly payroll expense for March, April, May, and June of 2019. If the business has been in operation for less than 12 months, the amount will be 2.5x the average monthly payroll expense for January and February of 2020.

Note – any salary/compensation amount greater than $100,000 annually for a single employee is excluded from this calculation

Permitted uses of funds include:

i.) Payroll costs

ii.) Costs related to the continuation of group health care benefits

iii.) Payments of interest (not principal) on debt that was in place

before 2/15/2020

iv.) Rent

v.) Utilities

Loan  Details:

4.0% maximum

10 years maximum

PPL loans will be unsecured

Personal guaranties are not required

There is no requirement that borrowers be unable to get financing elsewhere or “credit elsewhere test”.

Principal and interest payments will be deferred for at least six months, though borrowers may pre-pay the loan at any time without penalty.

Loan Forgiveness:

A portion of the loan used for eligible expenses will be forgiven. The amount forgiven will be the following expenses paid in the 8 weeks following the loan origination date:

i.) Payroll costs

ii.) Interest (not principal) on a real estate loan that was in place

before 2/15/2020

iii.) Rent payments

iv.) Utility payments

The amount of loan forgiveness will be reduced if the borrower lays off employees or significantly reduces salaries. 

The formula determining the amount of reduction is generally summarized below:

i.) If the borrower has fewer full-time equivalent employees (“FTEs”) on average, per pay period, between 2/15/2020 and 6/30/2020 compared to the same period in 2019, the loan forgiveness amount is decreased by the percentage of reduction in FTEs. The borrower can also choose to have their number of FTEs for 2/15/2020 – 6/30/2020 compared to 1/1/2020 – 2/29/2020, and that percentage change can instead be used to determine the amount of the reduction, if any.

ii.) If any employee’s salary has been reduced by 25% or more, the dollar amount of the decrease in excess of 25% will be deducted from the loan forgiveness amount. This will not apply to any employee who earned more than $100,000 on an annualized basis for at least one pay period in 2019.

iii.) If the borrower has made layoffs or salary reductions but restores the FTE count and salary to the prior levels (per the formulas above) by 6/30/2020, there will be no reduction in the amount of loan forgiveness.

Borrowers must make the following “good faith certifications”:

i.) “that the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient”

ii.) “acknowledging that funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments”

iii.) “that the eligible recipient does not have an application pending for a loan under this subsection for the same purpose and duplicative of amounts applied for or received under a covered loan”

iv.) “During the period beginning on February 15, 2020 and ending on December 31, 2020, that the eligible recipient has not received amounts under this subsection for the same purpose and duplicative of amounts applied for or received under a covered loan”


Businesses applying for PPL loans will need to submit:

i.) Income statement for the prior twelve months specifically breaking out payroll expense on a monthly basis

ii.) Payroll tax filings reported to the IRS (Forms 1099-MISC)

iii.) Proof of existence before 2/15/2020 – such as articles of


iv.) Other documents as required by the SBA (to be determined)

In evaluating the eligibility of a borrower, a lender shall consider whether the borrower:

i.) Was in operation on 2/15/2020; and

ii.) Had employees for whom the borrower paid salaries and payroll

taxes; or

iii.) Paid independent contractors, as reported on a Form 1099-MISC.

This  detail  is  provided for  informational  purposes  only.    Please  consult  your  tax  advisor  and  or  legal  counsel  before  taking  action  on  this  program.



The Stimulus PackagE

Please Click On The Attached Links for Specifics on The Proposed Package

Today, the House of Representatives will attempt to pass the historic $2 trillion stimulus package that passed in the Senate earlier this week.  With a successful vote, the bill will be sent to the President of the United States’ desk to be signed into law.  As of now, here are some updated websites that help explain what is in the proposed bill.

Senate Passes PHASE III of COVID-19 Economic Stimulus Package


The Senate CARES Bill: Tax

Small Business:

The Senate CARES Bill: Helping Small Business

Distressed Industries:

The Senate CARES Bill: Protecting Americans' Livelihoods


The Senate CARES Bill: Unemployment


The Senate CARES Bill: Health

CARES Act Unemployment Insurance:

Summary: It dedicates $250 billion to give workers more access to Unemployment help during this public health emergency through:

  • Creates a temporary Pandemic Unemployment Assistance program 
  • Expands coverage to more workers, including self-employed, contractors and furloughed workers 
  • Increase of $600/week in unemployment benefits for the next 4 months 
  • Makes available 13 additional weeks of unemployment for those who need it 
  • Waives the normal one-week waiting period 
  • Includes funding to offset 50% of the costs of state and local government and non-profits for the cost of paying unemployment to their workers. 
  • Supports short-time, work share programs as an alternative to layoffs
  • Cash payments of up to $1,200 for individuals, $2,400 for married couples and $500 per child, reduced if an individual makes more than $75,000 or a couple makes more than $150,000
  • A $350 billion fund for small businesses to mitigate layoffs and support payroll
  • $500 billion available to the Treasury Department to make loans, loan guarantees and investments to or in industries damaged by the pandemic
  • Requires that recipients of loans do not buy back stock during the time the loan is outstanding, and that executives or employees who made more than $425,000 in 2019 do not get a raise for the next two years
  • Requires group health plans and insurance providers to cover without cost-sharing any coronavirus preventive services
  • An employee retention tax credit 
  • $240 billion in health-care relief 
  • $75 billion in aid for hospitals
  • $20 billion for health care for veterans
  • $20 billion for emergency public transportation relief
  • $10 billion for airport relief
  • $4.5 billion for the Centers for Disease Control and Prevention
  • $50 billion in relief to airlines in the form of loans or grants, and another $8 billion for cargo carriers
  • $17 billion in relief for unspecified “businesses critical to maintaining national security” 

Please  scroll  down  for  additional  details  and  a  library  of  links  for  local,  state  and  federal  programs.   We’re  in  this  together,  we  will  emerge,  and  emerge  stronger.


Resources for cOVID-19 Disaster REcovery


Federal Unemployment COVID-19 Program

Are you faced with layoffs? Click here to understand provisions to help your business and employees:


For our Canadian customers, here is a resource for clients to start with:


  • Alabama

Counties: Baldwin, Covington, Escambia, Geneva, Houston, Barbour, Chambers, Cherokee, Cleburne, De Kalb, Henry, Houston, Jackson, Lee, Randolph, Russell

  • Alaska

  • Arizona

  • Arkansas

  • California

  • Colorado

  • Connecticut

  • Delaware

  • Florida

  • Georgia

  • Hawaii

  • Idaho

  • Illinois

  • Indiana

  • Iowa

Counties: Clinton, Des Moines, Dubuque, Jackson, Lee, Louisa, Muscatine, Scott

  • Kansas

  • Kentucky

  • Louisiana

  • Maine

  • Maryland

  • Massachusetts

  • Michigan

  • Minnesota

  • Mississippi

  • Missouri

  • Montana

  • Nebraska

  • Nevada

  • New Hampshire

  • New Jersey

  • New Mexico

  • New York

  • North Carolina

  • North Dakota

  • Ohio

  • Oklahoma

  • Oregon

  • Pennsylvania

  • Rhode Island

  • South Carolina

  • South Dakota

  • Tennessee

  • Texas

  • Utah

  • Vermont

  • Virginia

  • Washington

  • West Virginia

  • Wisconsin

  • Wyoming

Critical Essential Business - COVID-19 - DHS Bulletin

Please Review How DHS Views Your Business

With states actively issuing stay at home orders except critical businesses/employees, please find guidance from the Department of Homeland Security.  Page 6 has specifics relating to Food Service.  Three Square Market can not issue guidance pertaining to how you view this and by no means encourages you to ignore any directives from any government authority.

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