Paycheck Protection Program Overview

Click here for the Paycheck Protection Program Application

Instructions for completing the form


President Trump signed the largest stimulus bill in American history on Friday, March 27, 2020. The aid package helps individuals, small, and big business alike. Key provisions in the bill include small business loans, namely the Paycheck Protection Program.

The paycheck protection program provides short-term cash flow assistance to small businesses to help them and their employees deal with the economic impact of the COVID-19 pandemic to make payroll and cover other expenses from February 15 to June 30 2020. Loans are made by banks, more lenders will likely be approved by the SBA to process the volume of loans anticipated. These loans are guaranteed by the Federal government. We recommend contacting your banking representative to begin gathering the information required. Please contact us if you have any questions on (973) 298-8500.
Covered Loan Period Retroactive to February 15, 2020 through June 30, 2020.
Eligible Businesses Small Businesses, Nonprofits, Tribal Businesses, and Veteran’s Organizations
  • Have less than 500 employees or applicable size standard for the industry as provided by SBA
  • Sole proprietors, self-employed individuals, or independent contractors
  • Were in business on February 15, 2020
Maximum Loan Amount The lesser of:
  1. 2.5 times the average monthly payroll costs during the 1-year period before the date on which the loan is made
  2. $10 million

For new businesses, the measurement period would be January 1 to February 20, 2020.

The legislation also temporarily increases the maximum amount for an SBA Express loan from $350,000 to $1 million through December 31, 2020.

Allowable Uses
  • Payroll Costs
  • Healthcare benefits (including paid sick leave, and insurance premiums)
  • Mortgage interest obligations
  • Rent obligations
  • Utility payments
  • Interest on other debt obligations incurred previous to February 15, 2020
Eligible Lenders SBA and the Department of the Treasury are granted authority to determine additional lenders to administer the program loans.
Maturity Schedule Maximum 10 year maturity after application for loan forgiveness
Payment Deferral Not less than 6 months and not more than 1 year, including payment of principal, interest and fees
Terms of Loan Forgiveness Loan recipients will be eligible for forgiveness for an 8 week period after the loan’s origination date in the amount equal to the sum of the following costs incurred during that period:
  • Payroll costs (compensation above $100,000 is excluded)
  • Payment of interest on mortgage obligation
  • Rent obligations
  • Utility payments

The amount forgiven cannot exceed the amount borrowed.

Loan forgiveness will be proportionally reduced if the average number of employees is reduced during the covered period as compared to the same period in 2019. The amount of loan forgiveness will be reduced by the amount of any reduction in total employee salary or wages during the covered period that is in excess of 25% of the total salary or wages.

  • Payroll documentation and documentation of expenses are required to receive forgiveness to ensure the forgiveness was used to retain employees and pay expenses.
  • Borrowers that rehire laid off employees by June 30 won’t be penalized for having a smaller workforce at the beginning of the period.
  • Borrowers with tipped workers may receive loan forgiveness for the additional wages paid to those employees.

Lenders have 60 days to issue a decision on the application.

The canceled loan amount will not count towards gross income for tax purposes.

Waivers Borrower, lender fees and prepayment fees are waived.
Borrower Requirements

Good faith certification that the loan is necessary because of economic uncertainty caused by COVID-19 and will be applied to maintain payroll and make required payments.

Borrower must also certify that they are not receiving this assistance and duplicate funds for the same uses from another SBA program.

No collateral or personal guarantee are required.