This is an example conversation flow. The content in this conversation flow is for demonstration purposes only and should NOT be considered authoritative.
To go through the example, pretend that you are a customer service representative at a bank or lending institution and that you have received a question about the Payroll Protection Program. The conversation flow will guide you as to what to ask, what to do, and how to respond.
Select an option
Would you like to fill out an application for a Paycheck Protection Loan?
Send email to caller
Fantastic! I'm going to send you a link to the form on our website. Can I get your email address?
Copy link to this form
www.thisisyourform.com and send it to caller.
Wait 10 seconds
Did you receive the email?
Great. Just click the link in the email and you will be able to fill out the application.
Do you have any additional questions?
Check SPAM and verify spelling
Okay. Can you check your junk or spam folder?
If it's there, complete call.
If it's NOT there, confirm spelling of email address.
Is there anything else I can help you with?
Rules for Eligibility
- A small business with fewer than 500 employees
- A small business that otherwise meets the SBA’s size standard
- A 501(c)(3) with fewer than 500 employees
- An individual who operates as a sole proprietor
- An individual who operates as an independent contractor
- An individual who is self-employed who regularly carries on any trade or business
- A Tribal business concern that meets the SBA size standard
- A 501(c)(19) Veterans Organization that meets the SBA size standard
Special rules for Franchises and Food Services sector
- If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis
- If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company, the normal affiliation rules do not apply
In evaluating eligibility, lenders are directed to consider whether the borrower was in operation before February 15, 2020 and had employees for whom they paid salaries and payroll taxes or paid independent contractors.
Lenders will also ask you for a good faith certification that:
- The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations
- The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments
- Borrower does not have an application pending for a loan duplicative of the purpose and amounts applied for here
- From Feb. 15, 2020 to Dec. 31, 2020, the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold emergency loans made between Jan. 31, 2020 and the date this loan program becomes available into a new loan)
If you are an independent contractor, sole proprietor, or self-employed individual, lenders will also be looking for certain documents
(final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship.
- That the borrower sought and was unable to obtain credit elsewhere.
- A personal guarantee is not required for the loan.
- No collateral is required for the loan.
We don't know yet.
We aren't sure yet.
That depends on a few factors. Give me a moment while I look those up.
That depends on whether you meet certain requirements.
Loan is forgiven if you meet these requirements
A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:
- Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
- Interest on the mortgage obligation incurred in the ordinary course of business
- Rent on a leasing agreement
- Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
- For borrowers with tipped employees, additional wages paid to those employees
- The loan forgiveness cannot exceed the principal.
The amount of loan forgiveness is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees
What if you bring back employees OR restore wages?
Reductions in employment or wages that occur during the period beginning on February 15, 2020, and ending 30 days after enactment of the CARES Act, (as compared to February 15, 2020) shall not reduce the amount of loan forgiveness IF by June 30, 2020 the you eliminate the reduction in employees or reduction in wages.
Anything else I can help with?