Business FAQs

Check back often as we will be regularly adding information.

Eligibility

Q. Who is eligible for the Paycheck Protection Program?

A. Business with 500 or less employees, sole proprietors, independent contractors, and self-employed individuals who were in operation on February 15, 2020. See page 5-6 of the Paycheck Protection Program – Interim Final Rule for details.

Loan Amounts

Q. How much can I borrow?

A. The amount is based on a calculation of average monthly payroll times 2.5 up to $10 million.

Q. How is the monthly average payroll calculated?

A. This is a somewhat complex calculation that looks at:

  • All payroll costs for the last 12 months

  • Subtract compensation in excess of $100,000

  • Divide this number by 12

See page 8-9 of the Paycheck Protection Program – Interim Final Rule for details.

Q. What qualifies as payroll costs when calculating monthly average payroll?

A. Payroll costs used in this calculation include:

  • Salary, wages, commissions, tips

  • Benefit payments: leave, health care premiums, and retirement

  • State and local taxes assessed on the employee’s compensation

 

See page 10 of the Paycheck Protection Program – Interim Final Rule for details.

Q. Can independent contractors count as employees with the average payroll calculation?

A. No.

Application

Q. How do you apply for the Paycheck Protection Program?

A. Loans applications are being managed by Small Business Administration approved lending institutions. Check with your business bank(s) to see if they are going to accept loan applications.

Q. When can a business apply for the Paycheck Protection Program?

A. Small businesses and sole proprietorships can begin applying on April 3, 2020. Independent contractors and self-employed individuals can begin applying on April 10, 2020.

Q. What forms and documents will be required to apply to the Paycheck Protection Program?

A. Specific documents may vary by bank, but the U.S. Department of the Treasury has indicated the following:

  • SBA Form 2483

  • Payroll documentation

See page 15 of the Paycheck Protection Program – Interim Final Rule for details.

Q. What Utah banks are participating in the Paycheck Protection Program?

A. See https://www.utah.bank/advocacy/resources/covid-19/ppp-banks

Q. What Utah credit unions are participating in the Paycheck Protection Program?

A. See https://www.utahscreditunions.org/resources/166/

Loan Forgiveness

Q. How does the loan forgiveness work?

A. Over an eight-week period following the date of the loan, money spent on the following can be forgiven:

  • Payroll costs

  • Mortgage payment interest for mortgages started before February 15, 2020

  • Rent payments on leases started before February 15, 2020

  • Utility payments for service agreements started before February 15, 2020

 

Note that only 25% of the forgivable amount may come from non-payroll costs.

Q. What happens to the balance of the loan that isn’t forgiven?

A. The balance will need to be paid back according to the terms of the loan.

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