Innovative Financing Solutions
Innovative Financing Solutions Innovative Financing Solutions

Paycheck Protection Program (PPP) Summary Guidelines **

Application/ Approval/ Loan Details:


  • Defines the covered period as beginning 2/15/2020 and ending 6/30/2020.
  • Authority is delegated to approved SBA lenders, including new SBA lenders approved during the covered period. Applications can be made directly through Lenders, however, IFS is establishing a queue of applicants to match with Partner Lenders as soon as applications can be submitted.
  • SBA Guaranty is 100%.
  • Increased eligibility for certain small businesses and organizations to include nonprofits, veterans organizations, or tribal business concerns.
  • Size standard is the greater of 500 employees or less per location OR the applicable SBA established size standard per industry by NAICS code.
  • Limited documentation requirements.
  • Waiver of affiliation rules for businesses with NIACS codes beginning with 72, approved franchises, and businesses that received assistance through the SBIA.
  • Affiliations rules are applicable to all other businesses, nonprofit and veteran organizations.
  • Maximum loan amount during the covered period is the lesser of $10,000,000 or a formula driven by average payroll costs.
  • Allowable uses include payroll support, salaries, paid sick or medical leave, health insurance premiums, retirement benefits, mortgage interest, rent, utilities, and interest on other debt obligations.
  • Eligibility criteria is limited to determining if the borrower was in operation on February 15, 2020 and had employees for whom salaries or payroll taxes were paid or independent contractors reported on Form 1099.
  • Waives credit elsewhere test.
  • Waives personal guarantees.
  • Waives collateral.
  • Waives fees.
  • 10-year repayment term for remaining balance after application of forgiveness.
  • Interest rate not to exceed 4%.
  • Minimum initial payment deferment of 6 months but not more than 1 year.
  • SBA will establish fee limits for Agents.
  • No prepayment penalties.


Loan Forgiveness:

  • Forgiveness amount - eligible costs, first 8 weeks post close
  • Eligible expenses for loan forgiveness amount – payroll costs, interest (not principal) on debt, rent, utilities (electric, gas, water, telephone, internet, transportation)
  • Exclude pay to employees > $100,000
  • Subtract from forgiveness amount - # of reduced employees and reduction of pay per employee > 25% compared to prior year or prior months period
  • If the salary reduction occurred between 2/15/2020 and 4/26/2020, Borrower can re-hire or pay employees with PPP funds to eliminate the reduction prior to 6/30/2020
  • Loan forgiveness amount is not taxable 
  • Application documentation includes payroll tax filings, state income, and unemployment insurance filings, cancelled checks, receipts, transcripts or other documentation evidencing expenditures for other covered expenses.


> Link to final CARES Act Bill


** The above guidelines are based on the CARES Act bill and do not consider additional regulatory guidance that may be issued by the Small Business Administration. The SBA will issue final regulatory guidance which must be followed.