SBA 2021 Reference Guide

SBA 2021 REFERENCE GUIDE

Sep. 8, 21 P a g e | 1

Contents

Contents ................................................................................................................................................................................... 1

COVID EIDL ............................................................................................................................................................................... 4

Affiliation vs. Single Corp Group Limit ............................................................................................................................. 4

Client Systems .................................................................................................................................................................. 4

Closing Documents (LCDs) >$500,000 ............................................................................................................................. 5

Closing Documents (LCDs) >$500,000 with Real Estate Collateral .................................................................................. 5

COVID-19 EIDL Application .............................................................................................................................................. 5

Code for Pending Task ..................................................................................................................................................... 9

Declined Letter Resubmission ......................................................................................................................................... 9

Declined Status: Loan Modifications ............................................................................................................................... 9

Extended Deferment...................................................................................................................................................... 10

Hours of Operation ........................................................................................................................................................ 11

Increase Requests .......................................................................................................................................................... 11

Interest Statements/Loan Balance ................................................................................................................................ 13

Loan Details .................................................................................................................................................................... 13

Multiple Signers on Closing Docs ................................................................................................................................... 14

NAICS Codes ................................................................................................................................................................... 17

New Lending Limits ........................................................................................................................................................ 17

Next Steps for EIDL Increase Request ............................................................................................................................ 18

No Slider/Increase Request Button? ............................................................................................................................. 18

Process Workflow – Loan Amounts >$500,000 ............................................................................................................. 19

Request More Funds ...................................................................................................................................................... 20

Required Documents for loans >$500K ......................................................................................................................... 21

Size Standards ................................................................................................................................................................ 21

Time Frame for Greater than $500,000 loans ............................................................................................................... 22

Undeliverable Increase Request Email .......................................................................................................................... 22

Unqualified Status .......................................................................................................................................................... 23

Targeted Advance .................................................................................................................................................................. 23

Targeted Advance Application ....................................................................................................................................... 24

Delinquent Child Support .............................................................................................................................................. 29

Disbursement Discrepancies.......................................................................................................................................... 30

FAQS ............................................................................................................................................................................... 30


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Mapping Tool ................................................................................................................................................................. 31

No Email Notification for Decline? ................................................................................................................................ 32

Reevaluation .................................................................................................................................................................. 32

Resending a TA/STA Email Invitation ............................................................................................................................. 33

Supplemental Targeted Advance ................................................................................................................................... 40

Shuttered Venue Operators Grant (SVOG) ............................................................................................................................ 40

Paycheck Protection Program................................................................................................................................................ 40

Access to CAFS, PIMS, and E-Tran.................................................................................................................................. 40

Appeals- Interim final rule ............................................................................................................................................. 40

Application Submission .................................................................................................................................................. 41

Application Submission resumes ................................................................................................................................... 41

Bank is Not Accepting My PPP Application .................................................................................................................... 41

Banks – Requirements for Loans ................................................................................................................................... 41

Business Size for PPP...................................................................................................................................................... 41

Can I apply for both the PPP and the EIDL/EIDL 10,000 Loan? ..................................................................................... 41

Collateral ........................................................................................................................................................................ 43

Coverage Period ............................................................................................................................................................. 43

Eligibility ......................................................................................................................................................................... 43

Eligibility to become a Lender........................................................................................................................................ 43

ETran and CAFS Questions ............................................................................................................................................. 43

Faith-Based Organizations in PPP and EIDL FAQ’s ......................................................................................................... 43

Fees ................................................................................................................................................................................ 43

Felony ............................................................................................................................................................................. 44

First Payment ................................................................................................................................................................. 44

Guarantee ...................................................................................................................................................................... 44

How do I apply to Process PPP Loans? I am an SBA Lender. ........................................................................................ 44

How to Apply ................................................................................................................................................................. 45

Independent Determination .......................................................................................................................................... 45

Interest Rate .................................................................................................................................................................. 45

Lenders Guidelines and Limits ....................................................................................................................................... 45

Loan Details and Forgiveness......................................................................................................................................... 45

Loan Submission ............................................................................................................................................................ 46

Locate a Lender .............................................................................................................................................................. 46

Maturity ......................................................................................................................................................................... 46


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Maximum Loan Amount ................................................................................................................................................ 46

New Lenders .................................................................................................................................................................. 46

Personal Guarantees ...................................................................................................................................................... 46

PPP Coverage ................................................................................................................................................................. 46

PPP Forgiveness FAQs .................................................................................................................................................... 46

PPP Lending Summary ................................................................................................................................................... 47

PPP Talking Points .......................................................................................................................................................... 47

PPP Top FAQs ................................................................................................................................................................. 47

Talking Points ................................................................................................................................................................. 47

Time Frame the PPP Loan Covers .................................................................................................................................. 49

Website Page for - Paycheck Protection Program ......................................................................................................... 49

When can I apply?.......................................................................................................................................................... 50

What is the status of my PPP loan? ............................................................................................................................... 50

Who Can Apply? ............................................................................................................................................................. 51

Who is Processing the PPP Loans?................................................................................................................................. 51

Will this loan be forgiven? ............................................................................................................................................. 51


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COVID EIDL Affiliation vs. Single Corp Group Limit

For COVID EIDL loans, an affiliated business or affiliate is a business in which an eligible entity has:

• Ownership or right to profit distributions of 50 percent or more; or

• Contractual authority to control the direction of the business, provided that such affiliation shall be determined as of any

arrangements or agreements in existence as of January 31, 2020

Single corporate group: Entities are part of a single corporate group if they are majority owned, directly or indirectly, by

a common parent.

• There is a new limit on the maximum loan amount to a single corporate group for Covid EIDL loans

• Entities that are part of a single corporate group may not receive Covid EIDL loans in the aggregate more than $10 millio

Client Systems

Remote Desktop / CSC

This is the system that you will use to access the Knowledge Base, Rapid Portal, and SBA Outlook account. If you have received an error message indicating that you have been locked out for too many login attempts, please submit a ticket through the Liveops Support Center with the following subject line:

*Login Assistance Needed - Remote Desktop/CSC*

o Using this subject line allows us to sort the tickets and submit these requests more quickly o Resets are submitted to the client on a tracker - client indicates when your credentials have been reset o ARA will reply at earliest convenience to ticket. o **It is NOT recommended to save your CSC Password - This could be causing the lockouts with Cache

issues**

Rapid Portal

This is the system that you will use to access an applicant’s loan information. If you having issues receiving the email to reset the password, please try using lowercase letter for the initials in your SBA email address. Additionally, please check the "Other" folder for an email from [email protected]. If you are still unable to access the Portal, please submit an LSC Ticket with the following subject line:

*Login Assistance Needed - Rapid Portal*

Widespread Issues with Client Systems

If there are widespread issues with the Remote Desktop or Rapid Portal affecting multiple agents, internal Tier 2 agents, and/or applicants, please report issues to the ARA on duty in the VCC. We will report to the Client for further investigation of issues. It is highly recommended that your businesses stay committed in Five9 and Serenova to assist with call volume.

mailto:[email protected]


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Please attempt to assist applicants to the best of your ability. If you are unable to assist, please provide the applicant with the appropriate SBA email address.

Closing Documents (LCDs) >$500,000 The following Loan Closing Documents will be needed to process loans over $500K. Each document will be generated

through the Rapid system and uploaded into the applicant/borrower’s portal to DocuSign:

• Loan Authorization and Agreement (LAA) – or – Amended LAA (if prior EIDL was approved under $500K)

o Certificat as to Lobbying and EEO Poster (Form 622) are also attached to the LAA – but are not signature

documents)

• Promissory Note – or – Modified Note (if prior EIDL was approved under $500K)

• Security Agreement – or – Amended Security Agreement (if prior EIDL was approved under $500K)

o UCC-1 is filed by third party vendor to perfect the Security Interest in state/jurisdiction of the business after Loan is

funded

• Guarantee(s) – or Amended Guarantee(s) (if prior EIDL was approved under $500K)

o SOP 50 30 9, Sec 7.12 requires Personal Guarantee for any Principal for a Business loan.

o Principals defined as individual or legal entity who owns 20 percent or more of the business

Closing Documents (LCDs) >$500,000 with Real Estate Collateral

The following additional Loan Closing Documents will be needed to process loans over $500K when Real Estate (RE)

Collateral is available. These additional documents will be generated outside of the Rapid system and sent to borrower

separately from the standard LCDs:

• Mortgage/DOT – (Other State Specific RRE Security Document (Deed to Secure Debt, etc.)

o Document prepared after obtaining a Legal & Vesting report confirming ownership and signatories

If needed

• Any additional State or County required document(s)

o Requests for Notice, Recording Cover Sheets, Affidavits as to Exemption, etc..

• Certification of Federal Flood Insurance

o Form to be sent to Borrower when the RE Collateral has been flood mapped and determined to be located in a

Special Flood Hazard Area (SFHA)

COVID-19 EIDL Application

Page 1 – Disclosures

Note: there is no back button or saving until page 3 "Back" and "next" buttons on the bottom of the page. If a user EVER

clicks the back button on the browser, the information is lost and would need to start again!

Go to Top of Contents


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Page 2 – Business Information

Note: there is no back button or saving until page 3 "Back" and "next" buttons on the bottom of the page. If a user EVER

clicks the back button on the browser, the information is lost and would need to start again!

Required fields are denoted by red asterisk.

A trade name is required: if a business does not have one, Please use the business name.



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Complete the fields that apply from "Is this Applicant a Franchise" Compensation From Other Sources…" These fields will

not apply to every applicant.



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Business activity is a required field. If the Applicant can not find an applicable option, "Miscellaneous services" and

"none of the below" are options


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Code for Pending Task

Declined Letter Resubmission The Decline Letter is available to agents under the “DMS Docs” section in the file. The agent is free to email the caller a

copy after confirming their identity.

Declined Status: Loan Modifications

If the loan modification showed as ‘pending’ and reverts back to ‘Funded’ with the previous amount this means that the

modification was declined or pulled by the applicant.



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Approved response: “Unfortunately, we were unable to approve your request. You will be receiving a letter explaining

our official decision within the next few days”.

EIDL Advance Reconciliation Payments

SBA will be remitting reconciliation payments beginning February 9, 2021 through February 19, 2021 for any loan with

an SBA forgiveness payment that was reduced by the amount of an EIDL Advance.

• PPP lenders are not required to request remittance of the reconciliation payment. SBA will automatically identify loans

where SBA remitted a forgiveness payment to a PPP lender that was reduced by an EIDL Advance.

• The amount of the reconciliation payment will be equal to the previously deducted EIDL Advance amount, plus interest

through the remittance date. SBA will use the interest accrual method currently identified in the Forgiveness Platform.

• SBA will remit the reconciliation payment to the ACH account identified by the PPP lender of record in the Forgiveness

Platform. The ACH addenda for these payments will be identical to the on-going Forgiveness payment processing.

• After processing is complete, the amount of the reconciliation payment will be displayed on the Payment Dashboard

under the Adjustment column. In addition, a payment reconciliation letter will be posted in the Forgiveness Platform for

your records.

The PPP Lender is responsible for notifying the borrower of the reconciliation payment. The PPP Lender

is also responsible for re-amortizing the PPP loan and notifying the borrower of the amount of the next

payment due or advising the borrower that the loan has been paid in full, whichever is applicable. If the

amount remitted by SBA to the PPP lender exceeds the remaining principal balance of the PPP loan

(Because the borrower made a payment on the loan), the PPP lender must remit the excess amount,

including accrued interest paid by the borrower, to the borrower.

Additional resources pertaining to the Economic Aid Act and PPP – including application forms, lender

guidance, and PPP program rules – can be found on SBA’s PPP website or the U.S. Treasury PPP website.

Extended Deferment

SBA Extends Deferment Period for all COVID-19 EIDL and Other

Disaster Loans until 2022

The U.S. Small Business Administration announced extended deferment

periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL)

program, until 2022.

• All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have

a first payment due date extended from 12-months to 24-months from the date of the

note.

• All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have

a first payment due date extended from 12-months to 18-months from the date of the

note.

Existing SBA disaster loans approved prior to 2020 in regular servicing status as of



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March 1, 2020, received an automatic deferment of principal and interest payments through

December 31, 2020. This initial deferment period was subsequently extended through

March 31, 2021. An additional 12-month deferment of principal and interest payments will be

automatically granted to these borrowers. Borrowers will resume their regular payment

schedule with the payment immediately preceding March 31, 2022, unless the borrower

voluntarily continues to make payments while on deferment. It is important to note that the

interest will continue to accrue on the outstanding balance of the loan throughout the

duration of the deferment.

SBA continues to strive to make available all previously approved Coronavirus Pandemic

stimulus funding and administer the new targeted programs related to provisions in the 2020

Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid

Act) as quickly as possible.

COVID-19 EIDL loans are offered at very affordable terms, with a 3.75% interest rate for small

businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity. Interest

continues to accrue during the deferment period and borrowers may make full or partial

payments if they choose.

Questions on SBA COVID-19 EIDL and disaster loan payments can be answered by email at

[email protected] or by calling SBA’s Customer Service Center at

1-800-659-2955 (TTY: 1-800-877-8339).

Hours of Operation

8 am – 8 pm EST Monday through Sunday. Your business will have the option to transfer to Tier 2 Escalations during this

time.

Increase Requests

• The SBA has increased the maximum amount small businesses and non-profit

organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL)

program.

• Effective September 8, 2021, the SBA raised the loan limit for the COVID-19 EIDL program from

a maximum loan amount of $500,000 to $2,000,000.

• An initial “Exclusivity Period” applies:

o September 8 – October 7: Only loans $500,000 or less will be approved

o Beginning October 8: Loans approved up to $2 million

• Businesses that want to request an increase should do the following:

o Send email to [email protected]

o Use subject line “EIDL Increase Request for [insert your 10-digit application number]”

o Be sure to include in the body of your email identifying information for your current



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o loan including application number, loan number, business name, business address,

o business owner name(s), and phone number.

Important: Do not include any financial documents or tax records with your initial

request. You will receive a follow up email notification if we need additional

documents.

• Increase requests will be processed in the order received. Due to the expected high

volume of incoming requests, it may be several weeks before applicants receive a

response. Applicants should not send multiple requests as the additional email

volume could slow response times.

• Any new loan applications and any loans already in process when the new loan limits

went into effect will automatically be considered under the new limits covering 24 months

of economic injury up to a maximum of $500,000.

• Collateral will continue to be required for loans over $25,000. SBA will take a security

interest in business assets evidenced by a general security agreement and UCC filing.

• For loans of more than $200,000, an unsecured personal guarantee will be required from

any individual with an ownership interest of 20 percent or more. Real estate collateral will

not be required for loans of $500,000 or less.

• This new relief builds on SBA’s previous March 12, 2021 announcement that the agency

would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until

2022 to offer more time for businesses to build back.

• To shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster

loans made in 2020 to 24months from the date of the note and to 18months from the date

of the note for all loans made in the calendar year 2021. Interest will accrue during the

deferral period.

Increase Request Amount as Original Loan Amount?

If a borrower has inadvertently selected the same amount on the slider as their original loan amount (meaning no

increase to the loan), the applicant can go back into the portal and change the amount, on their own, as long as the

stage is “OFFER ACCEPTED.” If the request has been progressed all the way through to “SUBMITTED DEAL,” the applicant

will need to wait until a Loan Officer is assigned to the file so it can be resized before they will be able to select a

different amount.



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Will the loan amount include the Increase Request amount?

Please note SBA will not approve a loan (or increase) for more than our current lending limit of $500,000.

The increase request that a borrower completes in the portal will reflect the total amount of funds they would like to

borrow. The slider will start at the current loan amount and extend to their increased eligibility.

Interest Statements/Loan Balance

All existing SBA disaster loans have been deferred through the end of this year, and all new loans are now being deferred for 18 months from approval (previously 12 months). Accordingly, with the new deferments most borrowers will not get a statement until late 2021 or 2022.

Due to the new deferment period, applicants will not receive loan statements until a month before their payment is due. At this time, Applicants should be encouraged to create an account with Capital Access ( https://caweb.sba.gov) to track how interest is accruing and the loan balance. Interest will continue to accrue daily even though their payment has been deferred.

If an applicant has any additional questions about this information, please advise them to send an email to [email protected] or [email protected] for further assistance.

Loan Details

In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loan (EIDL).

o FAQ Regarding COVID-19 EIDL

PURPOSE To meet financial obligations and operating expenses that could have been met had the disaster not occurred

LOAN AMOUNT

For loans approved starting the week of September 8, 2021: 24-months of economic injury with a maximum loan amount of $2,000,000.

For loans approved prior to the week of September 8, 2021, see loan increases.

TERMS

o 3.75% for businesses (fixed) o 2.75% for nonprofits (fixed) o 30 years o No pre-payment penalty or fees

USE OF PROCEEDS

Working capital and normal operating expenses Example: continuation of health care benefits, rent, utilities, fixed debt payments. (New) To make debt payments on conventional dept Example: monthly payments, deferred interest pre-payments (New) To make regularly scheduled payments on Federal loans (direct or guaranteed)


https://us-east-2.protection.sophos.com/?d=sba.gov&u=aHR0cHM6Ly9jYXdlYi5zYmEuZ292Lw==&i=NWNkODQzMDliNWFiMjgxNDkyODk4ZDc1&t=MEN3clBKV1c5TkovZ29penQvcmtoYk1ZV1dDSGZ4YTBhVDZQcXBtWDV6cz0=&h=ef50f1639c9e4e66a5e652accbfb9b52



https://www.sba.gov/document/support-faq-covid-19-economic-injury-disaster-loan-eidl

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan#section-header-5


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COLLATERAL REQUIREMENTS

o Required for loans over $25,000 o SBA uses a general security agreement (UCC) designating business assets as

collateral, such as machinery and equipment, furniture and fixtures, etc.

FORGIVABLE

o NO – EIDL Loan o YES – EIDL Advance*

*Advance funds have been fully allocated and are not currently available

MATURITY 30 years

PAYMENTS

Borrower may make payments if they choose to do so.

Set up online payments through Pay.gov OR mail payments to:

U.S. Small Business Administration 721 19th Street Denver, CO 80202

Be sure to include EIDL loan number on mailed-in checks.

SBA is currently accepting new COVID-19 EIDL applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations.

If you have already applied via the streamlined application portal, please do not resubmit your application.

Multiple Signers on Closing Docs SBA made some system enhancements in RAPID allowing multiple signers on the Closing Documents.


http://www.pay.gov/


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NAICS Codes

New Lending Limits

SBA to Increase Lending Limit for COVID-19 Economic Injury Disaster Loans

The U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations

can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the

SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan

amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.


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Businesses that receive a loan subject to the current limits do not need to submit a request

for an increase at this time. SBA will reach out directly via email and provide more details

about how businesses can request an increase closer to the April 6 implementation date. Any

new loan applications and any loans in process when the new loan limits are implemented

will automatically be considered for loans covering 24 months of economic injury up to a

maximum of $500,000.

This new relief builds on SBA’s previous March 12, 2021 announcement that the agency would

extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer

more time for businesses to build back. In order to shift all EIDL payments to 2022, SBA will

extend the first payment due date for disaster loans made in 2020 to 24-months from the date

of the note and to 18-months from the date of the note for all loans made in the calendar year

2021.

Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to

[email protected] or directed to SBA’s Customer Service Center at

1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).

Next Steps for EIDL Increase Request

Next Steps for Loan Increase Requests for COVID-19 EIDL – Effective today, April 22, 2021, SBA is contacting borrowers that submitted a loan increase request to [email protected] beginning on April 6 with the below next step instructions. All borrowers that previously requested a loan increase should be contacted by COB on April 23, 2021.

Next Steps for COVID-19 EIDL Increase Requests

1. Log into your SBA loan portal account at: https://covid19relief1.sba.gov/ 2. After you log into your account, click on the button that reads “Request More Funds ”; The “Request More

Funds” button will only be visible if your current loan amount is not already at the maximum loan limit 3. Next, you will be asked to disclose if any changes have occurred since the original EIDL application was

submitted, such as any owners of 20% or more of the applicant business being currently involved in a bankruptcy.

4. You also will be asked which form was used for the applicant business’s most recent tax return, such as Form 1040 (Schedule C, E or F), 1065 (Partnership), 1120S (S Corporation), or 1120 (C Corporation)

5. Next, you will use the slider bar to select a new increased loan amount. 6. You may be required to electronically sign an IRS Form 4506-T allowing the SBA to obtain tax transcripts directly

from the IRS. 7. Once these steps are completed, you can submit the loan increase for processing.

No Slider/Increase Request Button?



https://us-east-2.protection.sophos.com/?d=sba.gov&u=aHR0cHM6Ly9jb3ZpZDE5cmVsaWVmMS5zYmEuZ292Lw==&i=NWVmZDMxZGJjZmJmN2MwZTQwZjJjNTI5&t=ekVtSWFGblYrTnpOenRsK2k3ZVZOTmhlcWZCSEpTT3kvVHhhL3ZVSnkwdz0=&h=410b51fa808a4d77a962b2cc15d25457


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The most common situation SBA has seen is related to an LLC entity that did not select the tax return type in the Portal.

if you are unable to assist the applicant, you are encouraged to transfer the call using the Tier 2 Escalations button in the

Liveops Script (For Five9 agents, you will transfer using the Call Pad).

Process Workflow – Loan Amounts >$500,000 Originals

• Applicant selects a loan amount >$500K, or

• Loan Officer (LO/Team Lead (TL) determines loan amount eligibility is >$500K / resizes loan

• Applicant uploads required documents in the portal

• Applicant submits the application for processing

Reconsideration/Appeals

• LO determines loan amount eligibility is >$500K/resizes loan

• Applicant accepts loan amount of >$500K

• Applicant uploads required documents in portal


Loan Modifications

• Applicant requests LMOD in portal and selects a loan amount >$500K, or

• LO determines loan amount eligibility is > $500K/resizes loan

• Applicant uploads required documents in the portal


Loan Officer Review

• Only Loan Officers / Team leads having the appropriate role in Rapid will be assigned a “large loan” to work

• Loan Officer will review the financial data provided and perform the following

o Repayment analysis

o Credit analysis (at least one of the owners must have a credit score of 625 or higher)

o Collateral analysis

o Submit recommendations to Team Lead for review


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Request More Funds

Recent legislation has allowed SBA to raise the loan limit on COVID loans to $500,000 (from $150,000) and to extend the Deferment Period on which the loan is based to 24 months (from 6 months). Due to these changes, SBA has added a “Request More Funds” Button to the Portal for applications that do not meet the new lending limits.

If a loan is already in Loan Mod Stage, the Processing loan officer will address the changes and authorize the maximum eligibility and then the borrower can decide how much they want.

If a loan is not already in Loan Mod Stage, to clarify the information in the screenshot below, this button shall be available for all applications that:

• Are in the funded stage but the current loan limit of 500,000 has not been applied • Have been submitted but the current loan limit has not been applied • Have no funding holds • Amount previously disbursed is less than the economic injury calculation of 500,000 was not disbursed.



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Required Documents for loans >$500K Documents must be uploaded via loan portal:

• 2019 Business Federal Income Tax Return (including all schedules)

• Standard Resolution and Certification (ODA Form P-022)

• Schedule of Liabilities (SBA Form 2202) (listing of Notes, Mortgages, etc.)

• List of Real Estate Owned

• Personal Financial Statement (SBA Form 413) Used for sole proprietors/independent contractors

***NOTE: Applicants will see a link to the required documents in the portal***

Size Standards

New additional ways to meet size standards – As of the date of application, businesses meet size standards if they:

• Are a business that is assigned a NAICS code beginning with 61, 71, 72, 213, 3121, 315, 4448, 451, 481, 485, 487, 511, 512,

532 or 812; and

• Employ not more than 500 employees per physical location; and

• Together with affiliates have no more than 20 locations


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Current size standards – As of the date of application, businesses meet size standards if they:

• Are a business, including an agricultural cooperative, aquaculture enterprise, nursery, or producer cooperative (but

excluding all other agricultural enterprises), that is small under SBA Size standards (as defined in 13 CFR Part 121);

• Are an individual wo operates under a sole proprietorship, with or without employees, or as an independent contractor;

• Are a private non-profit organization of any size or a faith-based organization of any size;

• Are a business, cooperative, agricultural enterprise, Employee Stocks Ownership Plan, or tribal small business concern that,

including affiliates, has not more than 500 employees

Time Frame for Greater than $500,000 loans Exclusivity Time Frame

• 9/8/21 – Policy changes in effect

• 9/8 – 10/7 - >$500K applications can be submitted for processing

o **Loan amounts >$500K cannot be approved or disbursed

o Disbursements limited to $500K during this period**

• 10/8 & beyond – Approvals of loans greater than $500K up to $2M can begin

Applicants having loan eligibility >$500K may:

• Elect to receive $500K during the exclusivity period between 9/8. – 10/7.

o Average processing time (application to disbursement) is approximately 2 – 3 weeks for eligible applicants.

• Submit a subsequent LMOD increase request for amount >%400K.

o Funds >$500K would not be approved until on or after 10.8.21, with an additional closing process before

disbursement

Or

• Request to receive the full eligible loan amount up to #2M, but funds will not be approved until on or after 10/8/21, with an

additional closing process before disbursement.

o The average processing time for loans >$500K (including increases) is 45 days.

Undeliverable Increase Request Email

We have received many reports of issues with sending requests to [email protected].

Why is this happening? When hovering over the email address link with the actual letter ([email protected]) there is a “+” sign. Gmail account owners are clicking on this to reply to the message.

Please advise applicants experiencing this issue to open a separate email and manually type the email address in the “To” line for their increase request to be sent properly.





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Unqualified Status While flagged for decline, these files are reviewed by a Team Lead who may decide to request more information from

the applicant in an attempt to overcome the initial “unqualified” determination. Most of these cases end up being

declined.

The preferred response: “We’re still reviewing your request. You’ll receive our final decision in writing shortly”

Targeted Advance

COVID-19 Targeted EIDL Advance was signed into law on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.

Advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.

Applicants do not need to take any action at this time.

SBA will reach out to those who qualify.

SBA will first reach out to EIDL applications that already received a partial EIDL Advance (between $1,000 - $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation.

All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov .

Applicants may qualify if they:

Are located in a low-income community. The definition of a “low-income community” is defined in section 45D(e) of the Internal Revenue Code. Note that the applicant must be located in a low-income community in order to qualify. Additional details on how SBA will identify low-income communities will be available soon on our Coronavirus Relief Options page; AND


http://sba.gov/

http://sba.gov/

https://us-east-2.protection.sophos.com/?d=sba.gov&u=aHR0cHM6Ly93d3cuc2JhLmdvdi9mdW5kaW5nLXByb2dyYW1zL2xvYW5zL2Nvcm9uYXZpcnVzLXJlbGllZi1vcHRpb25z&i=NWNkODQzMDliNWFiMjgxNDkyODk4ZDc1&t=dEQwek0wS0ZIZmQ3bGlybDQzblNKV1A3b2orNnZ2RTY2bHM5UXo4cnJvdz0=&h=233a1556e33c4426bc628ec07b86dd6c

https://us-east-2.protection.sophos.com/?d=sba.gov&u=aHR0cHM6Ly93d3cuc2JhLmdvdi9mdW5kaW5nLXByb2dyYW1zL2xvYW5zL2Nvcm9uYXZpcnVzLXJlbGllZi1vcHRpb25z&i=NWNkODQzMDliNWFiMjgxNDkyODk4ZDc1&t=dEQwek0wS0ZIZmQ3bGlybDQzblNKV1A3b2orNnZ2RTY2bHM5UXo4cnJvdz0=&h=233a1556e33c4426bc628ec07b86dd6c


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Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.

• Next, SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue) AND:

Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.

All applicants may be asked to provide an IRS Form 4506-T to allow SBA to request tax return information on the applicant’s behalf.

Please do not advise callers to complete duplicate COVID-19 EIDL applications. Only prior applicants will be considered for the Targeted EIDL Advance.

Please remember, SBA will reach out to applicant’s via email, if their business qualifies for the Targeted EIDL Advance!

Targeted Advance Application

https://us-east-2.protection.sophos.com/?d=sba.gov&u=aHR0cHM6Ly93d3cuc2JhLmdvdi9kb2N1bWVudC9yZXBvcnQtaXJzLWZvcm0tNDUwNi10&i=NWNkODQzMDliNWFiMjgxNDkyODk4ZDc1&t=QnZkUmJCVzQrdUtFNytWU21qM3FCK2ExeC8xcFRYa0l6U1FxaVdEWEtNST0=&h=233a1556e33c4426bc628ec07b86dd6c


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Delinquent Child Support For the Targeted Advance program, the delinquent child-support issues were self-reported on the application. Many applicants may have answered this question incorrectly. If so, please advise them to send an email seeking Re-Evaluation to [email protected].




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Disbursement Discrepancies

In the below scenario, an applicant anticipated receiving $9,000 for the Targeted Advance from SBA per their Portal,

however the deposit in their bank account was less than the expected $9,000:

Generally, these situations are the result of a Treasury Offset action. If an applicant calls in with this inquiry, it is

recommended that you direct the applicants to the Treasury Department with their questions at 800-304-3107.

FAQS

Frequently Asked Questions Targeted EIDL Advance and Supplemental Targeted Advance Funds Returned by Bank

UPDATED MAY 20, 2021

My business was approved for a Targeted EIDL Advance (or Supplemental Targeted Advance) and I was informed that

funds had been sent to my bank. However, the money never showed up in my account and my bank says it returned

the funds to the SBA. Since you have determined my business is qualified, how can I get those funds?

We are working on an update to our system that will enable us to re-disburse those funds as soon as possible. If

you have not already done so, please send an email with a photo ID front and back and a check with the word “VOID”

written across it. Please start the subject line of your email with your application number and send to:

[email protected]

Will I lose my place in line and have my funds given to another business?

No. If the original disbursement was returned by the bank, be assured the funds were obligated for you and will remain available, even if the issue is not resolved immediately.

How long will I have to wait?

We don’t have a specific time frame, but we are working diligently to resolve the issue quickly.

How will I know the matter has been resolved?

Businesses awaiting re-disbursement will be notified when the funds are re-disbursed.




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Why would the bank return the funds instead of putting them into my account?

Some common reasons funds are returned is that the account is closed, the applicant provided an incorrect routing

or account number, the name or EIN number on the SBA’s deposit does not match the name or EIN number on the

bank account, or the account is a personal account rather than a business account. You will need to contact your

bank to learn the reason specific to your case.

What does the SBA do when funds are returned to it?

Our staff examines every case where funds are returned and contacts the applicant to request any additional

information or documentation needed to overcome the reason for the return. Additional documentation includes

but is not limited to a copy of the applicant’s photo identification and voided check for the correct account. Once

we have the information needed to clear the issue, we take the necessary actions.

Mapping Tool

Low-Income Community Mapping Tool • To help businesses determine if they are located in a “low-income community” and potentially eligible for the Targeted EIDL Advance, SBA is making available a mapping tool at https://sbaeidl.policymap.com/app. • To qualify for the Targeted EIDL Advance program, businesses must be invited by SBA to apply and meet the following eligibility requirements:

1. Located in a low-income community. 2. Suffered economic loss greater than 30 percent, as demonstrated by an 8-week period beginning on March 2, 2020, or later, compared to the previous year. Applicants will be required to provide the total amount of monthly gross receipts from January 2019 to the current month-to-date. 3. Must have 300 or fewer employees.

• If a business receives a direct invite from SBA to apply for the Targeted EIDL Advance, they are encouraged to check the map at https://sbaeidl.policymap.com/app to see if their business address meets the low-income community eligibility requirement before they apply. • For more information about the Targeted EIDL Advance program, please visit sba.gov/coronavirusrelief. How to Use the Mapping Tool • The low-income community mapping tool is simple and easy to use. • Go to https://sbaeidl.policymap.com/app and enter an address into the Location search bar above the map. For best results, enter a complete address (street address, city, state, ZIP code). • When an address is found, a pin will be placed showing that location on the map. • If you are unable to locate an address (e.g., rural routes or P.O. boxes instead of a full street address), you can enter a ZIP code into the location search bar and then zoom to an area. Alternatively, you can also enter latitude, longitude coordinates into the location search bar, if available. • Census tracts that are identified as "low-income communities" are shaded dark purple on the map. • When hovering over a location on the map, an info bubble will display a "Yes" or "No" based on



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whether the underlying census tract is identified as a "low-income community". • To see more information for a particular census tract, click on the map. A detailed info bubble will show the underlying indicators used to determine eligibility (e.g., poverty rate, census tract median family income (MFI) as a percent of metro area or statewide MFI, etc.)

No Email Notification for Decline?

Q: My Targeted EIDL Advance application status changed to decline but I did not receive an email notification with a decline reason. Is SBA going to send me the reason for the decline?

A: Yes. All applicants will receive an email notification with the reason for the decline. Some decline letters are currently delayed so we can update our system to include updated instructions on how to request a reevaluation. If your application status changed to declined but you did not receive an email notification, your decline letter will be sent by email in the coming days.

Reevaluation

As of April 17th, 2021, applicants can send a request for reevaluation of a Targeted EIDL Advance application that was declined to the following email address: [email protected]

Applicants should follow these instructions when requesting a reevaluation:

• Send email to [email protected] • Use subject line “Reevaluation Request for [insert your 10-digit application number]” • Be sure to include in the body of the email identifying information for the application including application

number, business name, business address, business owner name(s), and phone number. • Important: Please also include an explanation and any documentation that addresses the reason for the decline,

if available. SBA will contact applicants if additional documentation is required to complete our review.





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Resending a TA/STA Email Invitation


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Supplemental Targeted Advance

SBA Launches $5,000 Supplemental Targeted Advance – Effective today, April 22, 2021, SBA is launching the $5,000 Supplemental Targeted Advance program, which was part of the American Rescue Plan Act signed into law on March 11, 2021. A press release will go out later today announcing the launch and TPs will be provided to SBA program offices as a follow up to this email.

1. SBA will utilize the Targeted EIDL Advance application to determine if businesses meet the below eligibility criteria for the Supplemental Targeted Advance:

2. Located in a low-income community. 3. Suffered greater than 50 percent economic loss. 4. Have 10 or fewer employees. 5. Only businesses invited to apply for the Targeted EIDL Advance can also be considered for the Supplemental

Targeted Advance. SBA will contact potentially eligible business entities directly to apply for the Targeted EIDL Advance; upon completion of the application a determination will be made if they also qualify for the Supplemental Targeted EIDL Advance.

6. If a business already completed the Targeted EIDL Advance before April 22, and meets the above eligibility criteria, SBA will send them a follow up request to confirm that they want to receive the $5,000 Supplemental Targeted Advance. If the is declined for the Targeted EIDL Advance, they will not be considered for the Supplemental Targeted Advance.

7. Updated FAQs and TPs will be released soon.

Shuttered Venue Operators Grant (SVOG) We do not have any information to provide about this loan program. Please transfer these applicants using the Tier 2

Escalations Button in the Script.

Paycheck Protection Program

Please note that the Client has not provided any up-to-date resources or information regarding the PPP. If an applicant

has questions about their PPP loan or application, please refer them to speak with their lender.

You are more than welcome to provide information from the SBA Knowledge Base and SBA.gov website about the

Second Draw PPP Loan.

**The following content has not been updated by the Client. Please refer applicants to their lender if they have additional

questions about the PPP.**

Access to CAFS, PIMS, and E-Tran The website for CAFS is https://caweb.sba.gov Instructions on setting up an account are located in the upper right-hand

corner of the webpage. Access questions/issues should be directed to CAFS by calling the 833-572-0502 toll-free

number.

Appeals- Interim final rule

Appeals of SBA Loan Review Decisions Under the Paycheck Protection Program

https://www.sba.gov/sites/default/files/2020-08/PPP -- IFR -- Appeals of SBA Loan Review Decisions Under the PPP.pdf


https://caweb.sba.gov/

https://www.sba.gov/sites/default/files/2020-08/PPP%20--%20IFR%20--%20Appeals%20of%20SBA%20Loan%20Review%20Decisions%20Under%20the%20PPP.pdf


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Application Submission

PPP loan applications (SBA Form 2483?) must be submitted to your local banking institution.

Application Submission resumes The deadline has now passed for the PPP program. No more applications are being accepted.

Bank is Not Accepting My PPP Application

If the Bank is refusing to accept your application, please find another bank. Any federally regulated lender can apply to

process PPP applications. If the bank does not currently have an SBA Form 750, please advise the bank to apply.

Additional information for the Lender/Bank can be found here.

Banks – Requirements for Loans

Banks can create their own specific requirements to make a loan. We can’t speak to what they are.

Business Size for PPP

Does my business have to have fewer than 500 employees?

No. Small business concerns can be eligible borrowers even if they have more than 500 employees, as long as

they satisfy the existing statutory and regulatory definition of a “small business concern” under section 3 of the

Small Business Act, 15 U.S.C. 632. A business can qualify if it meets the SBA employee-based or revenue-based

size standard corresponding to its primary industry. Go to www.sba.gov/size for the industry size standards.

Additionally, a business can qualify for the Paycheck Protection Program as a small business concern if it met

both tests in SBA’s “alternative size standard” as of March 27, 2020: (1) maximum tangible net worth of the

business is not more than $15 million, and (2) the average net income after Federal income taxes (excluding any

carry-over losses) of the business for the two full fiscal years before the date of the application is not more than

$5 million.

A business that qualifies as a small business concern under section 3 of the Small Business Act, 15 U.S.C. 632,

may truthfully attest to its eligibility for PPP loans on the Borrower Application Form, unless otherwise ineligible.

Can I apply for both the PPP and the EIDL/EIDL 10,000 Loan?

Borrowers can apply for both an SBA Economic Injury Disaster Loan and the Paycheck Protection Program loan.

However, the Paycheck Protection Program loan funds and the Economic Injury Disaster Loan funds cannot be used for

the same purpose. The Paycheck Protection Program loan must be used for payroll (minimum of 75% of the funds

received) for it to be eligible for a forgivable loan, and the remaining is used for different purposes. Borrowers who

accept both loan funds should document the uses of the funds appropriately.

Select the loan program that best meets your individual business needs; however, you are not permitted to hold funds

from both programs for the same purpose.

The PPP loan has different terms from the EIDL loan. The Paycheck Protection Program’s maximum loan amount is $10

million, with a fixed 1% interest rate and maturity of two years. The Paycheck Protection Program loan must be used for



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payroll (minimum of 75% of the funds received) for it to be eligible for a forgivable loan, and the remaining is used for

different purposes.

Economic Injury Disaster Loan assistance provides up to a $2 million (Click HERE for new maximum for COVID-19 EIDL

Loan) loan per business and is long-term, low-interest-rate at 3.75% for businesses, and 2.75% for non-profits and

maturity of up to 30 years. If your Economic Injury Disaster Loan was used for payroll costs, your Paycheck Protection

Program loan must be used to refinance your Economic Injury Disaster Loan. Any advance up to $10,000 on the

Economic Injury Disaster Loan will be deducted from the loan forgiveness amount of the Paycheck Protection Program

loan.

The application period for PPP loans runs through June 30, 2020, but the EIDL application period runs

through December 2020. If you have working capital needs beyond what is provided by PPP, you can

apply for additional assistance through the EIDL program. Any advance up to $10,000 on the Economic

Injury Disaster Loan will be deducted from the loan forgiveness amount of the Paycheck Protection Program

loan.

If you are applying for both, you can accept PPP first – then decide whether to close on your EIDL approved loan. An EIDL

approved loan may be closed within 60 days, and the borrower can choose whether to close on the loan. The EIDL

application period runs through Dec. 2020

For example, a borrower may obtain a loan from the Paycheck Protection Program and use those funds to pay

for eight (8) weeks of payroll or employee retention. They may wish to then dedicate their entire EIDL funds

towards working capital, notes payable and accounts payable that do not duplicate the funds provided through

the Paycheck Protection Program. If the EIDL loan was used for payroll expenses, the borrower must refinance

the EIDL loan with the PPP loan, which carries a lower interest rate as well as a shorter maturity period.

Borrowers who accept both loan funds should document the uses of the funds appropriately.

Paycheck Protection Program Full EIDL Loan

PURPOSE Forgivable if used for payroll

(minimum of 75% of the funds

received) and the remaining for

certain operating expenses

(amount of any EIDL advance is

not forgivable)

To meet financial obligations and

operating expenses that could

have been met had the disaster

not occurred (amount of any EIDL

advance is forgiven)

TERMS Up to $10 million

1% interest rate

Up to $2 million

(Click HERE for new maximum for COVID-19 EIDL Loan)

3.75% for businesses

2.75% for non-profits

FORGIVABLE YES NO – EIDL Loan

YES – EIDL Advance

MATURITY 2 years 30 years

FIRST PAYMENT DUE Deferred 6 months Deferred 1 year



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Collateral No collateral

SBA is not a collateral lender and will not decline your loan application for lack of collateral; however, for loans

over certain amounts, collateral will be required to the extent it is available.

Collateral is not required for loans of $25,000 or less. Loans over $25,000 and up to $500,000 will be secured

using business assets (UCC). For loans over $500,000, the preferred collateral is real estate, if available.

Coverage Period

My small business is a seasonal business whose activity increases from April to June. Considering activity from that period

would be a more accurate reflection of my business’s operations. However, my small business was not fully ramped up on

February 15, 2020. Am I still eligible?

In evaluating a borrower’s eligibility, a lender may consider whether a seasonal borrower was in operation on

February 15, 2020, or for an 8-week period between February 15, 2019, and June 30, 2019.

Eligibility

All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-

employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the

number of employees set by the SBA as the size standard for specific industries.

Eligibility to become a Lender

If you are a federally regulated lender and do not have an active SBA Form 750 (executed by your local SBA

District Office and updated in CAFS/PIMS prior to April 1, 2020), please complete the New Lender Application

found here:

https://home.treasury.gov/cares or https://www.sba.gov/sites/default/files/2020-04/PPP--

Agreement%20for%20New%20Lenders%20Banks%20Credit%20Unions%20FCS_w%20seal.pdf

and submit to the following address for processing: [email protected]

ETran and CAFS Questions Any and all calls from the lenders related to CAFS and access to ETran needs to be referred to 833-572-0502 as

our Centers who are answering Tier 2 questions do not have any ability to assist the lenders with the CAFS and

access to Etran. Please do not send them to ODA centers.

The client has confirmed this and requested that instead of referring the lenders to [email protected], please refer

them to the 833-572-0502 toll-free number.

Faith-Based Organizations in PPP and EIDL FAQ’s

Frequently Asked Questions for Faith-Based Organizations Participating in the PPP and EIDL loan programs

https://www.sba.gov/document/support--faq-regarding-participation-faith-based-organizations-ppp-

eidl

Fees No borrower or lender fees payable to SBA


https://home.treasury.gov/cares

https://www.sba.gov/sites/default/files/2020-04/PPP--Agreement%20for%20New%20Lenders%20Banks%20Credit%20Unions%20FCS_w%20seal.pdf

https://www.sba.gov/sites/default/files/2020-04/PPP--Agreement%20for%20New%20Lenders%20Banks%20Credit%20Unions%20FCS_w%20seal.pdf



https://www.sba.gov/document/support--faq-regarding-participation-faith-based-organizations-ppp-eidl

https://www.sba.gov/document/support--faq-regarding-participation-faith-based-organizations-ppp-eidl


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Felony

I need to request a loan to support my small business operations in light of current economic uncertainty. However, I

pleaded guilty to a felony crime a very long time ago. Am I still eligible for the PPP?

Yes. Businesses are only ineligible if an owner of 20 percent or more of the equity of the applicant is presently:

• incarcerated,

• on probation

• on parole

• subject to an indictment

• criminal information

• arraignment

• or other means by which formal criminal charges are brought in any jurisdiction

or, within the last five years, for any felony, has been:

• convicted;

• pleaded guilty

• pleaded nolo contendere

• been placed on pretrial diversion

• or been placed on any form of parole or probation (including probation before judgment).

First Payment First payment deferred for six months

Guarantee 100% guarantee by SBA

How do I apply to Process PPP Loans? I am an SBA Lender.

SBA’s Capital Access Financial System (CAFS) Partner Information Management System (PIMS) reflects that your

institution currently has an active SBA Form 750. The Form does not expire, and we do not have a record of your

institution requesting termination.

As of April 1, 2020, you have been provided access to the PPP program and will be eligible to process PPP loans through

E-Tran (SBAs loan delivery system) once available. Therefore, you do NOT need to submit a New Lender Application.

New Lender Applications are ONLY for institutions that do not currently have an SBA Form 750 executed with their local

District Office prior to April 1, 2020.

To view your agreement(s) in CAFS/PIMS, please use the following link:

https://caweb.sba.gov/cls/dsp_login.cfm

Log-in access is required for the above website. Please work within your institution to ensure that your team has access

to CAFS/PIMS and E-Tran.

Access questions and issues must be directed to CAFS by calling 833-572-0502.


https://caweb.sba.gov/cls/dsp_login.cfm


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How to Apply

You can apply through any existing SBA 7(a) lender or any federally insured depository institution, federally insured

credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make

these loans once they are approved and enrolled in the program. You should consult with your local lender as to

whether it is participating in the program.

Many banks have PPP sections on their websites. We should NOT encourage folks to break social distance and go to the

actual branch. Larger banks are taking apps on the websites as opposed to branches.

Independent Determination

Are Lenders required to make an independent determination regarding the applicability of affiliation rules under 13

C.F.R. 121.301(f) to borrowers?

No. It is the responsibility of the borrower to determine which entities (if any) are its affiliates and determine the

employee headcount of the borrower and its affiliates. Lenders are permitted to rely on borrowers’ certifications.

Interest Rate

An interest rate of 1.0%

Lenders Guidelines and Limits

Some Lenders have self-imposed a limit on the number of PPP Loans they will allow. If you get similar calls like this,

please advise the applicant to seek a referral from the bank and/or seek multiple lenders who can accept their PPP loan

applications.

There is a link on the PPP page of the sba.gov website to help lookup eligible lenders by zip code. However, it is

recommended that they should work with their back for referrals.

In addition, some banks are advising the applicant that they cannot accept their PPP application because they are not

banking customers or that they o not have a credit history with the bank. Banks can set and determine their own

guidelines as to whom they will lend money. We cannot speak to what the individual bank's guidelines are. Please

advise the applicant to use the link on the PPP page of the sba.gov website to lookup eligible lenders.

Loan Details and Forgiveness This program provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep

workers employed.

The new loan program will help small businesses with their payroll and other business operating expenses. It will provide

critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100%

guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the

portion of the loan proceeds that are used to cover the first 24 weeks of payroll costs, rent, utilities, and mortgage

interest.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.



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SBA will forgive loans if all employees are kept on the payroll for eight weeks, and the money is used for payroll, rent,

mortgage interest, or utilities.

Loan Submission

Lenders submit PPP loan applications via E-Tran, within CAFS (Capital Access Financial Systems).

Locate a Lender

Lenders may begin processing loan applications as soon as April 3rd, 2020.

Currently, we do not have the ability to locate lenders in your area. We can let you know the names of some of our best

lenders. Please review the list here.

https://www.sba.gov/paycheckprotection/find

Maturity

Maturity of 2 years

Maximum Loan Amount

The maximum loan amount is up to $10 million

New Lenders

The New Lender Application is expected to be finalized and available on the SBA and U.S. Treasury websites today and

can be found using either site below:

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources


Personal Guarantees No personal guarantees

PPP Coverage

What is covered in the PPP Loans?

Yes. PPP loans cover payroll costs, including costs for employee vacation, parental, family, medical, and sick leave.

However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001

and 7003 of the Families First Coronavirus Response Act (Public Law 116–127). Learn more about the Paid Sick Leave

Refundable Credit here

PPP Forgiveness FAQs

PAYCHECK PROTECTION PROGRAM As of August 11, 2020

Frequently Asked Questions (FAQs) on PPP Loan Forgiveness

The Small Business Administration (SBA), in consultation with the Department of the Treasury, is providing this guidance

to address borrower and lender questions concerning forgiveness of Paycheck Protection Program (PPP) loans, as



https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources



Sep. 8, 21 P a g e | 47

provided for under section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as amended by

the Paycheck Protection Program Flexibility Act (Flexibility Act).Borrowers and lenders may rely on the guidance

provided in this document as SBA’s interpretation, in consultation with the Department of the Treasury, of the CARES

Act, the Flexibility Act, and the Paycheck Protection Program Interim Final Rules (“PPP Interim Final Rules”) (link).

Direct link: Frequently Asked Questions For Loan Forgiveness

PPP Lending Summary

The link below overviews the approved lending process for the Paycheck Protection Program as of 8/08/2020.

Summary of PPP lending as of 8/8/20

PPP Talking Points

• PPP has been an overwhelming success for the American people.

• This unprecedented pandemic required an unprecedented response – and the President, SBA, Treasury, and Congress stepped up to save America’s small businesses and non-profit organizations.

• In six days, SBA and Treasury worked together to stand up a half-a-trillion dollar to serve as a lifeline to America’s small businesses and non-profit organizations.

• These aren’t just 5 million loans – these are 5 million small businesses and non-profit organizations that were able to keep tens of millions of employees on payroll and their doors open.

• SBA and Treasury listened to the needs of small businesses, non-profits and stakeholders – coordinating with Capitol Hill, we made real-time adjustments to ensure PPP was helping as many small businesses and non-profit organizations as possible.

• Nearly $520 billion and 5 million loans were approved in less than 3 months.

• At 11:59 p.m. EDT on June 30, 2020, SBA Capital Access Financial Systems (CAFS), including ETran and SBA Connect, will no longer accept Paycheck Protection Program (PPP) borrower applications from participating PPP lenders.

• SBA CAFS will continue to accept regular 7(a) and 504 loan applications.

• Lender Match will once again accept applications from 7a lenders, CDCs, and Microlenders with active agreements who were signed up before the CARES Act will be eligible to receive borrower leads.

• More information about the operational details of PPP loan forgiveness are forthcoming.

• As always, www.sba.gov/paycheckprotection is the best source of accurate information for all PPP related questions

PPP Top FAQs

PAYCHECK PROTECTION PROGRAM LOANS -Frequently Asked Questions

Frequently Asked Questions

Talking Points

Talking Points for PPP update 6/08/20

Modifications will implement the following important changes:


https://www.sba.gov/sites/default/files/2020-08/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28August%2011%2C%202020%29.pdf

https://www.sba.gov/sites/default/files/2020-08/PPP_Report%20-%202020-08-10.pdf

https://www.sba.gov/sites/default/files/2020-08/Final%20PPP%20FAQs%20%28August%2011%2C%202020%29_0.pdf


Sep. 8, 21 P a g e | 48

Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after

the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan

forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.

Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that

75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan

forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of

the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for

partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.

Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for

borrowers that are unable to return to the same level of business activity the business was operating at before February

15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020

by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the

Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–

19.

Provide a safe harbor from reductions in loan forgiveness based on reductions in full-

time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who

were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for

unfilled positions by December 31, 2020.

Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan

number) on or after June 5, 2020.

Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that

SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan

forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).

In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application

can be approved.

SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today following the enactment of the Paycheck Protection Program (PPP) Flexibility Act: “We want to thank President Trump for his leadership and commend Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working on a bipartisan basis to pass this legislation for small businesses participating in the Paycheck Protection Program. “We also want to express our gratitude to Chairman Rubio, Ranking Member Cardin, Senator Collins, Congressman Roy, Congressman Phillips, and other members of Congress who have helped to create and guide our implementation of this critical program that has provided over 4.5 million small business loans totaling more than $500 billion to ensure that approximately 50 million hardworking Americans stay connected to their jobs.



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“This bill will provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen our country. “We look forward to getting the American people back to work as quickly as possible.” Upcoming Procedures SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP. These modifications will implement the following important changes: Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after

the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan

forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.

• Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that

75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan

forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60

percent of the loan amount for payroll costs during the forgiveness covered

period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the

loan forgiveness amount having been used for payroll costs.

• Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent

employees for borrowers that are unable to return to the same level of business activity the business was

operating at before February 15, 2020, due to compliance with requirements or guidance issued between March

1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for

Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or

customer safety requirements related to COVID–19.

• Provide a safe harbor from reductions in loan forgiveness based on reductions in full-

time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who

were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for

unfilled positions by December 31, 2020.

• Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan

number) on or after June 5, 2020.

• Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that

SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan

forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).

• In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application

can be approved.

Time Frame the PPP Loan Covers The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently

laid-off employees through June 30, 2020.

Website Page for - Paycheck Protection Program

Where is the Paycheck Protection Program Information on the Website?



Sep. 8, 21 P a g e | 50

While the link is going to be listed below, the website is one of your business's most essential tools. It is

suggested that be knowledgeable about navigating the sba.gov website and know how to advise applicants

where to find the information they need.

For example, to navigate to the PPP Program information on the website, you would follow these steps:

• Go to: sba.gov

• Click on the Learn More under the Coronavirus (COVID-19): Small Business Guidance & Loan Resources

• Scroll Down to the Coronavirus Funding Options and find the last sentence on the page:

• To learn more about the relief options available for your business, click here.

• Scroll down to Funding Option and Select the program you need more information about.

• For this example, click on the Paycheck Protection Program.

This page is packed with information you need to know about. It includes:

Link to page:

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-

program-ppp

Find a Lender: https://www.sba.gov/paycheckprotection/find

Loan Information:

Frequently Asked Questions for Lenders and Borrowers

Affiliation rules for the Paycheck Protection program

Interim Final Rule for Applicable Affiliation Rules

Frequently Asked Questions for Faith-Based Organization in PPP and EIDL Programs

Who Can Apply

Other Assistance

Apply for disaster assistance (For assistance outside the EIDL and PPP)

Enhanced Debt Relief

Other Lending Options

SBA Local Assistance

Lender Forms and Guidance

Interim Final Rule

Paycheck Protection Program Lender Application Form

SBA Standard Loan Note (form 147)

Authorization Requests through PPP Lender Gateway SBA Connect link.

When can I apply? Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that

businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan and be approved on

the same day.

What is the status of my PPP loan?

Thank you for calling to check the status of your Paycheck Protection Loan. We know this is an extremely

difficult time for small businesses around the country. Unfortunately, we are do not have access to information

about this loan. You will need to check with your lender directly to check the status of the Paycheck Protection

Loan.


https://liveopshq-my.sharepoint.com/personal/dheffner_liveops_com/Documents/SBA/sba.gov

https://liveopshq-my.sharepoint.com/personal/dheffner_liveops_com/Documents/SBA/sba.gov

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp



Sep. 8, 21 P a g e | 51

For callers referred by their lenders to check the status of their loan: “SBA is doing all it can to serve small

businesses in the most efficient manner and shortest time possible, but loan status updates reside with the

lender, even if the lender has not heard back from SBA yet.”

Who Can Apply? This program is for any small business with less than 500 employees (including sole proprietorships,

independent contractors, and self-employed persons), private non-profit organizations, or 501(c)(19) veterans

organizations affected by coronavirus/COVID-19.

Businesses in specific industries may have more than 500 employees if they meet the SBA's size standards for

those industries.

Small businesses in the hospitality and food industry with more than one location could also be eligible at the

store and location level if the store employs less than 500 workers. This means each store location could be

eligible.

Who is Processing the PPP Loans? Lenders using their own systems and processes to make these loans.

Will this loan be forgiven? SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll,

rent, mortgage interest, or utilities.

https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp



https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

SBA 2021 Reference Guide

Documents

Transcript of SBA 2021 Reference Guide