additional paycheck protection program

Additional Paycheck Protection Program Loan (PPP) calculation for small business

Attention: Additional Paycheck Protection Program applications will be accepted by the SBA from participating lenders on Monday, April 27, 2020 at 10:30am EDT. Contact your financial institution right away!  If you need help, contact us at

(Photo credit Kelly-Sikkema-unsplash)

With the additional Paycheck Protection Plan funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis.

We will provide further information on the availability of the EIDL portal to receive new applications (including those from agricultural enterprises) as soon as possible.

This past week, an additional Paycheck Protection Program and Health Care Enhancement Act (let’s call it “CV3.5”) was approved by both houses and signed by the Presdeint. This new bill provides additional federal funding for small business programs and healthcare, including:

  • $60 billion in new SBA Paycheck Protection Program funding dedicated to small lenders and community-based financial institutions. These will directly help underserved small businesses and nonprofit organizations with a specific focus on rural, minority, and women-owned businesses.
  • $50 billion for the SBA’s Economic Injury Disaster Loan program.
  • $10 billion for the SBA’s Emergency Economic Injury Grant program.
  • $75 billion in emergency money for our healthcare system.
  • $25 billion in funding for testing and contact tracing capabilities.

Hanna Mori, Esq., State Director for U.S. Senator Cory Booker (Photo Courtesy Hanna Mori)

“Despite the successes in this bill, including $220 billion in additional funding that Senator Booker and his colleagues secured by forcing Leader McConnell to the negotiating table, we are still pushing for an additional stimulus bill to allocate funding to states and local governments who have been hardest hit by COVID-19, fix the regulatory framework of the SBA programs, and make sure money is going directly to individuals and families who are in desperate need,” said Hanna Mori, Esq., State Director for U.S. Senator Cory Booker.

Additional Paycheck Protection Program Loan Information

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

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.

You can apply through any existing SBA 7(a) lender or through 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.

How to calculate maximum loan amounts – by business type

additional paycheck protection program

(Photo Credit Kelly-Sikkema-unsplash)

The Small Business Administration (SBA), in consultation with the Department of the Treasury, is providing this guidance to assist businesses in calculating their payroll costs for purposes of determining the amount of a Paycheck Protection Program (PPP) loan businesses can apply for.

Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rules. The U.S. government will not challenge lender PPP actions that conform to this guidance1 and to the PPP Interim Final Rules and any subsequent rulemaking in effect at the time.

  1. Question: I am self-employed and have no employees, how do I calculate my maximum PPP loan amount? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.)

Answer: The following methodology should be used to calculate the maximum amount that can be borrowed if you are self-employed and have no employees, and your principal place of residence is in the United States, including if you are an independent contractor or operate a sole proprietorship (but not if you are a partner in a partnership):

  • Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
  • Step 2: Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
  • Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.
  • Step 4: Add the outstanding amount of any Economic Injury Disaster Loan (EIDL)

made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

Your 2019 IRS Form 1040 Schedule C must be provided to substantiate the applied-for PPP loan amount. You must also provide a 2019 IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record establishing you were self-employed in 2019 and a 2020 invoice, bank statement, or book of record establishing you were in operation on February 15, 2020.

For additional information on how to calculate your specific loan situation, go there: How to Calculate Loan Amounts

You might be interested: COVID-19 Resources for minority and women small businesses

Apply for jobs at the