New SBA Guidance on Paycheck Protection Program

New SBA Guidance on Paycheck Protection Program

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By Matt Austin, Managing Director, Keiter Advisors

Note: The Paycheck Protection Program Borrower Application Form was made available to small businesses as of April 3, 2020.

Observations and Resources for the Small Business Administration’s Paycheck Protection Program (PPP)

On March 31, the Small Business Administration (SBA) issued two documents:

  1. A sample Paycheck Protection Program Loan Application
  2. Paycheck Protection Program Information Sheet for Borrowers

Has Your Business Received a PPP Loan?


The SBA provided further guidance on Paycheck Protection Program Loans.  The significant updates from our perspective are as follows:

  • Small Businesses and sole proprietorships can apply for and receive loans through their existing lenders starting April 3, 2020. Independent contractors and self-employed individuals can apply through existing SBA lenders starting April 10, 2020.
  • Non-forgiven portions of the loans will be due in 2 years and bear interest at 0.5% fixed rate. The non-forgiven portions can be prepaid at any time without penalty.  Payments can be deferred for 6 months but interest accrues.
  • In determining the loan amount, the SBA clarified that employees making over $100,000 can be included in payroll costs, but their pay is capped at $100,000.
  • The SBA added a caveat that capped the amount that is forgiven for non-payroll costs at 25%.
  • The SBA added a comment that although an eligible concern can apply through June 30, 2020, they emphasized there is a funding cap and lenders will need time to process your loan.
  • The SBA confirmed that there is no collateral required, there are no personal guarantees but emphasized that if the loan is utilized for fraudulent purposes, the Government will pursue criminal charges.

Observations on PPP Loan Application Sample

  • The sample application requires the listing of all owners over 20%.
  • For certain questions, answers from owners of 20% or greater are required.

Should you have questions, please reach out to your lender, attorney or accountant. We continue to stress to clients that if they are interested in this program to contact their primary lender to convey their interest and to learn more about how that bank will be managing this process.


We are happy to answer any questions you may have as well.  We will keep you updated as the situation is fluid and subject to change. Contact us | Call 804.747.0000

Additional Resources:

COVID-19 Business Resource Library


About the Author

Matt Austin, Managing Director of Keiter Advisors, brings a desire to help clients through strategic business changes and is passionate about creating new insights that help businesses operate better and financially prosper. He enjoys working with people, is fascinated about data and enjoys rolling up his sleeves in any capacity. Matt began his career as an analyst with BB&T Capital Markets, focusing primarily on mergers & acquisitions. After BB&T Capital Markets, he worked with Virginia Capital Partners, LLC, a small Richmond based private equity firm where he focused on transactions in a variety of sectors including specialty consumer services, traditional media, wireless communications, specialty insurance, and healthcare.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.

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