SBA Sample Paycheck Protection Program Application
On March 31st, the U.S. Small Business Administration (“SBA”) released a sample application for a loan under the Paycheck Protection Program (“PPP”). While this is not yet final and the SBA is working vigorously to roll out the program, it provides and idea of things business owners who apply for such a loan will need to provide as well as the questions they will need to answer. The PPM loans are set to go live on Friday April, 3, 2020.
Each Owner will be required to fill out what their ownership percentage is and include their EIN/SSN and address. Additionally, the sample application states that if any of the following question are answered “Yes” the loan will NOT be approved:
1. Is the Business or any owner presently suspended, debarred, proposed for debarment, declared ineligible, voluntarily excluded from participation in this transaction by any Federal department or agency, or presently involved in any bankruptcy?
2. Has the Business, any of its owners, or any business owned or controlled by any of them, ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted in the last 7 years and caused a loss to the government
3. Is the Business or any owner of any other business or have common management with any other business? If yes, attach a listing of all Affiliates and describe the relationship as addendum A.
4. Has the Business received an SBA Economic Injury Disaster Loan between January 31, 2020 and April 3, 2020? If yes, provide details on a separate sheet identified as addendum B.
Additionally, applicants who are individuals and all 20% or greater owners must answer the following questions and if questions (5) or (6) are answered “Yes” or question (7) is answered “No”, the loan will not be approved.
5. Are you presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or presently incarcerated, on probation or parole?
6. Within the last 7 years, for any felony or misdemeanor for a crime against a minor: 1) been convicted; 2) pleaded guilty; 3) pleaded nolo contendere; 4) been placed on pretrial diversion; or 5) been placed on any form of parole or probation (including probation before judgment)?
7. I am a U.S. Citizen or have lawful permanent resident status.
The applicant must also make certain certifications such as:
Current economic uncertainty makes this loan request necessary to support ongoing operations of the Applicant;
Funds will be used to retain workers and maintain payroll or make payments on mortgages, leases or utilities. Must certify that they understand that in the event of any authorized use of funds, the Federal Government may pursue criminal fraud charges;
Documentation verifying full time number of employees on payroll and their respective information will be provided;
Loan forgiveness will be provided d for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than twenty-five percent (25%) of the forgiven amount may be for non-payroll costs;
During the period between February 15, 2020 and ending on December 31, 2020, the Applicant has not and will not receive another loan under this program;
Certification that all information provided is true and accurate; and
Acknowledgment that the lender will calculate the eligible loan amount using tax documents which have been submitted.
When the application goes live, we will provide any new and updated information. You can find the sample application here.
Please check out the Crow Legal COVID-19 Small Business Resource Center for continuous updates regarding options available to small businesses in response to COVID-19.