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Donna Lim

Understanding the Payroll Protection Program (PPP) & SBA EIDL Loans for Your Business

The Payroll Protection Program is one of the hottest topics around.  The rules state that it can be used for payroll, rent, mortgage interest or utilities.  However, 75% of the funds must be used for payroll.  You must retain/rehire back your employees for the 8 weeks after you have been granted the loan.  Forgiveness of the loan can be reduced based on headcount and reduction of hours.


To apply for this loan, you will need to use an existing SBA lender.  There is a sample application on the SBA website.  https://www.sba.gov/document/sba-form–paycheck-protection-program-ppp-sample-application-form

The application looks basic.  I believe the real work will be on the other side where we have to prove the funds were used to keep employees on the payroll.


Please remember that this is not free money … you do have to prove that you used it for the intended purpose and there is a hefty fine if you are found guilty of untruthful information.

There is also the Small Business Administration’s Economic Injury Disaster Loan or SBA EIDL which is offering a $10K advance.  Again, the 10K advance is to be used for payroll and you will need to show that you have kept your employees for that portion to be “forgiven”.  If they find that you didn’t qualify, it will turn into a normal SBA loan.  This loan can be applied for on the SBA website. https://covid19relief.sba.gov/#/

Yes, you can apply for both; however, the important thing to remember is that you cannot double dip on the forgiveness part.  The SBA will be cross referencing and determining if what your forgivable parts are.


This can all be a bit confusing especially since not all the information is available.  The Sooter Consulting Team is keeping up with the information being distributed and making it available to our clients as soon as we get it.

I’m in contact with Bank of America and Heritage bank and they are going to give me their requirements very shortly.  We have basically agreed the more information

they give us the cleaner the applications from my clients will be.

Some of you are working with Hjerpe & Tennison and I know they announced they would be applying on behalf of their clients.  I will let them take the lead on that for you.


If you want to talk about it, just give me a call.  I have been fielding calls all week and I’m happy to make sure I get your specific questions answered.

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