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The SBA CARES Act Payroll Protection application process has been launched!

April 2, 2020

Today, the SBA released the form titled “Paycheck Protection Program” designed to provide near term relief to small businesses and their employees. 

While the title references payroll, in fact, the program includes rent, utilities, and mortgages which should account for a majority of businesses’ operational costs.  

Included with the form is a fact sheet that we recommend that everyone read, but we also recommend that you ask the following questions as you traverse the application process.

  • What is the reporting form/requirements for the application process? 

While the application does request that the applicant provide 12 months of data regarding the relief that is being requested, there is no defined format.  We recommend that when you speak to the lender, that you get clarity as to the format so as to reduce risks in delays in your process.

  • Is it possible to get partially approved?

Is it possible that the lender will only approve certain aspects of the application, such as payroll, but rejecting rent?  Or is it an all-inclusive fail/pass model? 

  • If a portion or entirety of the application is not approved, can the applicant re-apply?

If there is an issue during the application process, can a business re-apply?  If yes, will the failed application influence the new application?

  • What reporting format is required to demonstrate how funds were used to make it forgivable?

What level of detail/documentation by loan type is required to be provided to the lender to have the loan forgiven?  What is the frequency of the reporting? 

Overall, we recommend that you discuss the application with your financial advisor.

Good luck and know that Metro 1 is here to provide whatever assistance we can through these difficult times.

Borrower Paycheck Protection Program Application

PPP Borrower Information Fact Sheet

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