Paycheck Protection Program and Other CARES Act Information

Capitol Hill Money
The SBA is now accepting Paycheck Protection Program applications for First Draw PPP Loans and Second Draw PPP Loans.

This round of the PPP authorizes up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

For those proceeding with PPP Loan Forgiveness, below are links to the forgiveness application forms and instructions:

Paycheck Protection Program Information

Funds from this program:

  • Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments;
  • Are potentially 100% forgivable if used for the above purposes; and
  • Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals
Based on the legislation, it may be helpful for interested business owners to gather the following information about their business:
  • 2019 Payroll--including the last 12 months of payroll
  • 2019 Employees--1099's for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099's for services)
  • Healthcare Costs--all health insurance premiums paid by the business owner under a group health plan.
  • Retirement--your company retirement plan funding paid for by the company.
More information and forms:

Update January 19, 2021:
SBA, in consultation with the Treasury Department, has recently released additional PPP guidance and resources:

Update January 17, 2021:
SBA, in consultation with the Treasury Department, has recently released additional PPP guidance and resources:

As part of the Second Draw Borrower application, Applicants must enter the SBA loan number of the First Draw PPP loan (i.e. the loan that was originated in 2020).  SBA loan numbers have the following format to help borrowers identify the SBA loan number of their first PPP loan: XXXXXXXX-XX (i.e. eight numbers followed by a dash and then two more numbers).   PPP lenders should make SBA loan numbers easily accessible to their borrowers.

Update January 13, 2021:
SBA, in consultation with the Treasury Department, has recently released additional guidance:

SBA will reopen the Paycheck Protection Program loan portal to small lenders ($1B or less in assets) for First and Second Draw applications on January 15, 2021 at 9:00 a.m. ET. The portal will open to all participating PPP lenders on Tuesday, January 19, 2021 for First and Second Draw loan applications.

Update January 8, 2021:
SBA, in consultation with the Treasury Department, has recently released additional PPP forms and guidance:  

Updated First Draw Forms

Second Draw Forms

Guidance & Resources

Update, January 8, 2021:
The SBA and Treasury announced today that the Paycheck Protection Program will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11 and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. This round of the PPP authorizes up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

Key PPP updates include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Update January 7, 2021:
SBA has issued several documents on the next round of the Paycheck Protection Program authorized by the recent COVID-19 stimulus package. The new documents include:
--An interim final rule on the PPP as amended by the Economic Aid Act
--An interim final rule on second-draw PPP loans
--Guidance on accessing capital for minority-, underserved-, veteran-, and women-owned businesses.

This stimulus package will provide support for a new round of PPP lending and provisions simplifying PPP loan forgiveness.

Update December 9, 2020:
SBA and Treasury have released updated guidance:
  • Frequently Asked Questions – Forgiveness FAQ # 53 (page 19) has been added (Released 12/9/20)
  • Question: Why are some PPP borrowers receiving a Loan Necessity Questionnaire (SBA Form 3509 or 3510)?

    Answer: As previously announced, SBA is reviewing all loans of $2 million or more, and other loans as appropriate, for eligibility, fraud or abuse, and compliance with loan forgiveness requirements. As part of this process, SBA is providing a Loan Necessity Questionnaire to lenders for them to provide to PPP borrowers that, together with their affiliates, received loans of $2 million or more. Upon request from their lender, borrowers should return the completed questionnaire to their lender within 10 business days of receipt.

    The information that borrowers provide on the questionnaire will help SBA assess those borrowers’ certification in their loan application that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant,” as required by the CARES Act.

    A request to complete the Loan Necessity Questionnaire does not mean that SBA is challenging a borrower’s certification that is required by the CARES Act. SBA’s assessment of a borrower’s certification will be based on the totality of the borrower’s circumstances through a multi-factor analysis. As described in FAQ #46, SBA will assess whether the borrower had adequate basis for making the required good-faith certification, based on its individual circumstances in light of the language of the certification and SBA guidance. This certification is required to have been made in good faith at the time of the loan application, even if subsequent developments resulted in the loan no longer being necessary. In its review, SBA may take into account the borrower’s circumstances and actions both before and after the borrower’s certification to the extent that doing so will assist SBA in determining whether the borrower made the statutorily required certification in good faith at the time of its loan application.

    After a borrower submits its completed questionnaire, SBA may request additional information, if necessary, to complete its review. When additional information is requested, borrowers will have an opportunity to provide a narrative response to SBA explaining the circumstances that provided the basis for their good-faith loan necessity certification. SBA will make a final determination that a borrower lacked an adequate basis for its loan necessity certification after reviewing any additional information that a borrower chooses to submit. This targeted, multi-step approach will ensure the integrity of the evaluation process and expeditious processing, as well as properly allocate SBA’s finite resources to those loans that require additional review.

Update October 13, 2020:
SBA and Treasury have released updated guidance regarding the deadline for borrowers to apply for forgiveness in the
Forgiveness Frequently Asked Questions – General Loan Forgiveness FAQ # 4 (page 2) has been added (Released 10/13/20)
  • Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness?

    Answer: No. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. The expiration date in the upper-right corner of the posted PPP loan forgiveness application forms is displayed for purposes of SBA’s compliance with the Paperwork Reduction Act, and reflects the temporary expiration date for approved use of the forms. This date will be extended, and when approved, the same forms with the new expiration date will be posted.

Update October 8, 2020:
The SBA and Treasury Department have released a simpler loan forgiveness application for PPP loans of $50,000 or less. Read the full press release here.
- View the simpler loan forgiveness application
- View the instruction for completing the simpler loan forgiveness application
- View the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.

Update October 2, 2020:
SBA Procedural Notice—PPP Loans & Changes of Ownership - The purpose of this Notice is to provide information concerning the required procedures for changes of ownership of an entity that has received Paycheck Protection Program (PPP) funds. View the PDF here.

IRS Announcement: Information Reporting Requirements for Paycheck Protection Program Loans Forgiven under the CARES Act Announcement 2020-12:
When all or a portion of the stated principal amount of a covered loan is forgiven because the eligible recipient satisfies the forgiveness requirements under section 1106 of the CARES Act, an applicable entity is not required to, for federal income tax purposes only, and should not, file a Form 1099-C information return with the IRS or provide a payee statement to the eligible recipient under section 6050P of the Code as a result of the qualifying forgiveness. The filing of such information returns with the IRS could result in the issuance of underreporter notices (IRS Letter CP2000) to eligible recipients, and the furnishing of such payee statements to eligible recipients could cause confusion. This announcement is intended to prevent any such confusion.

Update August 24, 2020: SBA & Treasury have updated the Interim Final Rule—Treatment of Owners and Forgiveness of Certain Nonpayroll Costs

Update August 11, 2020:
The SBA & Treasury have recently released additional guidance:

Update August 4, 2020:
The SBA and Treasury have released additional guidance:

Update July 23, 2020:
The SBA has released the following:

Update July 13, 2020:
The SBA and Treasury have released additional guidance:
    • Updated Paycheck Protection Program Lender Processing Fee Payment and 1502 Reporting Process (Released July 13, 2020)
      • Please note this time-sensitive provision on page 9 of the updated 1502 procedural notice: “After a Lender reports a loan as fully disbursed, the Lender must submit monthly PPP 1502 reports on or before the 15th of each month, or if the 15th is not a business day, on the next business day after the 15th. The first monthly PPP 1502 report is due on or before July 15, 2020, however, Lenders are permitted a 2 day grace period to report for this month only.”

Update July 6, 2020: 
The U.S. Small Business Administration, in consultation with the Treasury Department, today announced it was releasing detailed loan-level data regarding the loans made under the Paycheck Protection Program (PPP).  This disclosure covers each of the 4.9 million PPP loans that have been made.
See the breakdown of PPP Loan Data here, and read this list of things to keep in mind when reviewing the data.

Update June 29, 2020:
The Summary of PPP lending as of 6/27/20 has been posted to the SBA website.

Update June 26, 2020:
SBA and Treasury released additional guidance on How to Calculate Loan Amounts. Note the new question #10 on calculations for new self-employed individuals and revised questions 1, 2, 4, 5, 6, and 7 to reflect the PPPFA.

Update June 25, 2020:
The SBA and Treasury have revised the Frequently Asked Questions Document. FAQs #12 and #20 have been been revised. Also updated was the Interim Final Rule—Certain Eligibility Payroll Costs (specifically pertaining to fishing boat owners)

Update June 24, 2020:
The SBA and Treasury have released additional eligibility revisions to the First Interim Final Rule. Read the revisions here

Update June 22, 2020:
The SBA and Treasury have released additional revisions to the Loan Forgiveness Interim Final Rule (IFR) and the SBA Loan Review Procedures IFR. Read the revisions here.

Update June 19, 2020: 
The SBA and the Treasury have agreed with the bipartisan leaders of the U.S. Senate Small Business Committee to make public additional data regarding the PPP.  
SBA will disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, jobs supported, and loan amount ranges as follows:
  • $150,000-350,000
  • $350,000-1 million
  • $1-2 million
  • $2-5 million
  • $5-10 million

These categories account for nearly 75 percent of the loan dollars approved. For loans below $150,000, totals will be released, aggregated by zip code, by industry, by business type, and by various demographic categories.

For PPP data disclosed to date, including total dollars approved, loan sizes, lender sizes and types, loans approved by state, top lenders, loans by industry sector, and funds remaining, click here.

Update June 19, 2020: SBA releases Procedural Notice 5000-20032 that informs PPP Lenders regarding how loan proceeds must be used to refinance SBA Economic Injury Disaster Loans (EIDL). The notice also informs PPP Lenders of the procedure for remitting to the SBA any PPP loan proceeds designated for the refinance of an EIDL

Update June 19, 2020: SBA announces dedicated tool for Small Businesses to connect with Community Development Financial Institutions, small asset lenders participating in PPP. Read the press release here, and use the Lender Match tool here.

Update June 17, 2020:
SBA and Treasury announce a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020. Read the press release here.

Update June 12, 2020:
SBA and Treasury Announce Revised Guidance Regarding the PPP

Update June 9, 2020:
PPP Lending Operations Update:

1. Clarification on 5 year maturity with Flexibility Act:

Based on the enactment of the Paycheck Protection Program Flexibility Act of 2020, the maturity of all loans approved on or after June 5, 2020 will be for 5 years. The SBA E-Tran loan system has been updated to reflect that all loans will automatically reflect the 5 year maturity when submitted and approved. Loans approved and/or funded prior to June 5, 2020 with the 2 year maturity may be extended by the lender and borrower mutually agreeing to a 5 year maturity. Formal guidance on the changes to the CARES Act are forthcoming from SBA.

2. Tips to ensure your financial institution receives PPP processing fees:
  1. Submit your PPP 1502 report to SBA in accordance with SBA Procedural Notice on 1502 reporting.  
  2. Ensure your ACH information (including routing transmittal number (RTN)) is correctly reflected in the FTA Lender Portal (see the above Procedural Notice for instructions).
  3. Check the 1502 Dashboard frequently for any errors that must be corrected. 

Question-specific resources available to all PPP lenders:

  1. Submitting 1502 reports: contact the FTA at or at 877-245-6159;
  2. Setting up CAFS account: contact;  
  3. For other questions: please send an email to  

Update June 8, 2020:
SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin have put out a joint statement regarding enactment of the Paycheck Protection Program Flexibilty Act.
Provisions include:
  • 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.
  • Extending the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement.
  • 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.

Update June 7, 2020: 

The following PPP information has been posted on SBA’s website: 

Update June 5, 2020: SBA & Treasury have recently released additional guidance:

Update June 1, 2020: New PPP information has been posted to the SBA website:

Update May 25, 2020:
The Construction Industry Procurement Coalition delivered a letter, which asked for guidance on the PPP loan forgiveness program for small business government contractors.

Update May 22, 2020: 
SBA & Treasury have recently released additional guidance:

Note: These IFRs are being posted in advance of publication in the Federal Register. The official versions will appear in the Federal Register.

Update May 21, 2020: 
SBA & Treasury have recently released additional guidance:

  •  SBA Procedural Notice - Protection Program Lender Processing Fee Payment and 1502 Reporting Process - Read the notice here SBA_Procedural_Notice_5000-20028.pdf
    The purpose of this Notice is to inform Paycheck Protection Program (PPP) Lenders of the reporting process through which PPP Lenders will report on PPP loans and collect the processing fee on fully disbursed loans which they are eligible to receive.

Update May 19, 2020:
New PPP Information has been posted to the SBA website:

  • An updated Frequently Asked Questions Document (Question 48 – Released 5/19/20)
    • SBA is extending the deadline for lenders to electronically upload the initial SBA Form 1502 reporting information to the later of: (1) May 29, 2020, or (2) 10 calendar days after disbursement or cancellation of the PPP loan.

Update May 18, 2020:
New PPP information has been posted to the SBA website:

Note: This IFR is being posted in advance of publication in the Federal Register. The official version will appear in the Federal Register.

Update May 14, 2020:
SBA & Treasury have recently released additional guidance:

Update May 5, 2020:
SBA & Treasury have released additional information regarding the Paycheck Protection Program:

New Policy Guidance Effective April 28, 2020

New Policy Guidance Effective April 24, 2020—Paycheck Protection Program Interim Final Rule

Report on Paycheck Protection Program Approvals as of April 16, 2020

NASBP Blogs on this subject:

Paycheck Protection Program Audits Are Upon Us—Borrowers Prepare! Published July 2021

PPP Loan Necessity Questionnaire Retired, Review Prep Still Critical Published July 19, 2021

Five Things to Know About PPP Loan Audits Published April 20, 2021

New PPP Loan Eligibility, Requirements, and Upcoming Deadlines Under the Most Recent Federal Stimulus Package Published April 2021

PPP Forgiveness: 7 Commonly Asked Questions and Answers Published February 2021

How To Tackle Unresolved First and Second Draw PPP Loan Issues Published February 18, 2021

New PPP Funding Hits the Streets - A Primer on What Businesses Should Know Published February 16, 2021

You Received a PPP Loan That Exceeds the Maximum Allowed - Now What? Published February 15, 2021

SBA Releases Trio of New Interim Rules Addressing Eligibility, Forgiveness, and SBA Review of First-Draw and Second-Draw PPP Loans Published January 29, 2021

Game Changer for SBA PPP $150K Loans—3508S Forgiveness Application Published January 22, 2021

PPP Loan Portal Reopens for First- and Second-Draw Loan Applications Published January 19, 2021

SBA Issues Regulations on New Round of PPP Loans Published January 11, 2021

Eligibility for a Second PPP Loan Published January 8, 2021

New PPP2 Guidance Issued Published January 7, 2021

Yes, I can Deduct Expenses Paid with a Forgiven PPP Loan Published December 31, 2020

Congress' Second COVID-19 Relief Bill Updates Paycheck Protection Program Published December 30, 2020

Approved COVID-19 Relief Bill: What Small Businesses Need to Know About PPP Published December 28, 2020

M&A Deals and PPP Loans: Unexpected Parties in Your Deals Published December 15, 2020

SBA Issues Loan Necessity Questionnaires to PPP Recipients; Signals Next Step in Loan Compliance Investigations Published December 15, 2020

PPP Loan Forgiveness Applications and Increase in Federal Investigations Pose Risks for Small Businesses Published December 3, 2020

Big News from the IRS Regarding PPP Loan Forgiveness and the Taxability Related Expense Deductions
Published November 18, 2020

A Guide to the SBA PPP Loan Forgiveness Review Process Updated November 18, 2020

PPP Update: Loan Forgiveness and Paying Off Your Loan Published November 12, 2020

SBA Publishes PPP Necessity Questionnaires Published November 11, 2020

PPP Loans Over $2 Million and the PPP Necessity Questionnaires
Published November 6, 2020

Ten Things to Know About the PPP Loan Forgiveness Applications Updated November 5, 2020

Why You May Want to Wait to File for PPP Loan Forgiveness and Other Tips Updated November 5, 2020

SBA Questions Borrowers about the Necessity of Their PPP Loans Published November 4, 2020

SBA Begins Effort to Assess Economic Necessity for PPP Loans over $2 Million Published November 3, 2020

SBA Begins Issuing Loan Necessity Questionnaires to Certain PPP Borrowers
Published November 3, 2020

A Guide to the SBA PPP Loan Forgiveness Review Process Updated October 9, 2020

Treasury and Small Business Administration Make $50,000 and Under PPP Loans Easy to Forgive Published October 9, 2020

Families First Coronavirus Response Act: Q&A
 Published October 2, 2020

Just 9 (Not 10) Tips to Assist You in Obtaining PPP Loan Forgiveness
Published September 25, 2020

Liability Dangers for Recipients of CARES Act Funds: Lessons from Past and Present Enforcement Actions Published August 27, 2020

PPP Enforcement: It's Not Funny Published August 24, 2020

Have a PPP Loan? Be Sure to Have a Plan Published August 10, 2020

Legal Viewpoint: Why You May Want to Wait to File for PPP Loan Forgiveness and Other Tips Published August 7, 2020

SBA Issues FAQs on Forgiveness of Paycheck Protection Loans 
Published August 5, 2020

Private Watchdogs' Attempts to Retroactively Change PPP Loan Eligibility for Government Contractors Face Significant Hurdles Published July 30, 2020

PPP Applications Extended Until August 8, 2020; Borrower Details Released & Revisions to Forgiveness Application Timing Published July 6, 2020

Early Cases Demonstrate the Justice Department's Commitment to Aggressively Prosecute PPP Loan Fraud Published June 29, 2020

The Risks Are Real: What We Know and Can Predict About CARES Act Financial Fraud Enforcement Published June 26, 2020

DOJ Announces Trio of PPP Fraud Prosecutions 
Published June 26, 2020

Small Business Administration Releases Additional Paycheck Protection Program Guidance 
Published June 19, 2020

What to Know for Businesses Completing the Revised PPP Loan Forgiveness Applications Published June 18, 2020

SBA Issues Updated Paycheck Protection Program Loan Forgiveness Application and Issues new "EZ" Application Form Published June 17, 2020

Borrower Beware: Prepare Now to Defend Your Company's PPP Loan from SBA Review or a Possible False Claims Act or Criminal Investigation Published June 15, 2020

Additional Clarification of Paycheck Protection Program Changes Published June 9, 2020

Payroll Protection Program Flexibility Act Provides Employers with More Options Published June 10, 2020

Payroll Protection Program Expanded to Aid Small Business, but Workforce Questions Remain Published June 5, 2020

Major Changes in the Paycheck Protection Program Published June 5, 2020

Legislation Approved to Extend the Covered Period for PPP for PPP Loan Forgiveness and Make Other Significant Changes Published June 4, 2020

Proposed Legislation May Extend Period for PPP Loan Forgiveness—Meanwhile, SBA Releases Yet More Guidance 
Published May 29, 2020

SBA Issues Promised Good Faith Certification Guidance Published May 13, 2020

SBA Updates "Economic Uncertainy" Certification Guidance Published May 13, 2020

Paycheck Protection Program Loan Good Faith Certification Guidance Updated
 Published May 13, 2020

What Contractors Need to Know About the Paycheck Protection Program 
Published May 13, 2020

Paycheck Protection Program Safe Harbor Extended Until May 14, 2020 Published May 6, 2020

Who CARES About My PPP Loan? Everyone. 
Published May 1, 2020

Paycheck Protection Program: Understanding the Rules and Potential Options May Be Required to Maximize Loan Forgiveness Published April 27 2020

Ineligble PPP Borrowers Granted Safe Harbor Period to Return Money by May 7 Published April 24, 2020

SBA Issues New Guidance Regarding PPP—"Good Faith Rules and What You Should Know" Published April 24, 2020

How to Prepare for Replenishment of the Paycheck Protection Program Funds and EIDL 
Published April 23, 2020

SBA Issues Paycheck Protection Program Guidance Published March 31, 2020

Paycheck Protection Program Provides Forgivable SBA Loans Published April 1, 2020