top of page


As of April 14, 2020

Please be aware that the various programs and guidelines are changing almost daily.


  • Guide to the Federal Reserve's Main Street Response to COIVD-19 Support 

  • wkCommericalGroup Easy to Understand Summary of Benefits - PDF Download 

  • Payroll Protection Program - April 6, 2020 UPDATE - PDF Download

  • SBA Covid 19 Relief Program PPP and EIDL Explained with examples

What is the Paycheck Protection Program (“PPP”)? 
  • The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis

  • When and where can I apply? The SBA has indicated that small businesses and sole proprietorships can apply starting April 3, 2020, and independent contractors and self-employed individuals can apply starting April 10, 2020. However, banks who decide to participate in the program will have their own application process.

  • What do I need to apply? Payroll documentation and a good-faith certification will be required.

  • Those that are sole proprietaries should look for new information that the SBA states will be forthcoming on April 10th.

What do I need to certify? As part of the current SBA Application Form, the business and each 20% or greater owner must certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.

  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.

  • You have not and will not receive another loan under this program.

  • Documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after receiving this loan.

  • All of the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.

  • You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm the tax documents are identical to those you submitted to the IRS. You also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

  • You were in operation on February 15, 2020 and either had employees for whom you paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099-MISC.


Do I need to first look for other funds before applying to this program? 
  • No. The SBA has waived the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., waiving the Credit Elsewhere requirement).


How many loans can I take out under this program? 
  • Only one.


When do I need to start paying interest on my loan? 
  • All payments are deferred for 6 months; however, interest will continue to accrue over this period.


Can I pay my loan earlier than 2 years? 
  • Yes. There are no prepayment penalties or fees

How much of my loan will be forgiven? 
  • You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Not more than 25% of the forgiven amount may be for non-payroll costs.


  • You will also owe money if you do not maintain your staff and payroll:

  1. Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.

  2. Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.

  3. Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.


What is Pandemic Unemployment Assistance?   
  • Known as PUA, this is unemployment assistance for those, including independent contractors (e.g. real estate agents), who are unable to work, as a direct result of COVID-19, and don’t qualify for regular unemployment benefits. Individuals who are able to telework or receive sick leave or other paid leave benefits aren’t eligible.  In addition to state aid, an additional $600 per week is allocated to eligible individuals for a period of up to four months through July 31, 2020. State-level unemployment benefits are extended 13 weeks. The extension runs through December 31, 2020.


How long does it take to receive funds?
  • Reportedly three (3) days from approval.


What is the SBA? The SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. 

What is the standard 7(a) Loan? The 7(a)-loan program is the SBA's primary program for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loan. The maximum loan amount is $5 million and proceeds can be used to finance working capital, expansion/renovation, new construction, purchase of land or buildings, purchase of equipment or fixtures, lease-hold improvements, refinancing debt for compelling reasons, seasonal line of credit, inventory, or starting a business.

What is the SBA 504 Loan? The 504 Loan Program provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. 504 loans are made available through Certified Development Companies (CDCs), SBA's community-based partners for providing 504 Loans. These loans are typically used to finance commercial real estate or heavy equipment.

What is the Microloan Program? The Microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000.

How does SBA currently define Small Business concerns?

(a-1) Except for small agricultural cooperatives, a business concern eligible for assistance from SBA as a small business is a business entity organized for profit, with a place of business located in the United States, and which operates primarily within the United States or which makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. 

(a-2) A small agricultural cooperative is an association (corporate or otherwise) acting pursuant to the provisions of the Agricultural Marketing Act (12 U.S.C.A. 1141j) whose size does not exceed the size standard established by SBA for other similar agricultural small business concerns. A small agricultural cooperatives member shareholders are not considered to be affiliates of the cooperative by virtue of their membership in the cooperative. However, a business concern or cooperative that does not qualify as small under this part may not be a member of a small agricultural cooperative.

(b) A business concern may be in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that where the form is a joint venture there can be no more than 49 percent participation by foreign business entities in the joint venture.

(c) A firm will not be treated as a separate business concern if a substantial portion of its assets and/or liabilities are the same as those of a predecessor entity. In such a case, the annual receipts and employees of the predecessor will be taken into account in determining size.

What is included in NAICS Code 72? Accommodation and Food Services, which includes hotels, motels, casino hotels, bed-and breakfast inns, other traveler accommodation, RV (recreational vehicle) parks and campgrounds, recreational and vacation camps, rooming and boarding houses, dormitories, workers’ camps, food service contractors, caterers, mobile food services, drinking places, full-service and limited-service restaurants, cafeterias, buffets, and snack and nonalcoholic beverage bars.

What is a Loan Forbearance: Permits borrowers with a federally backed mortgage loan experiencing financial hardship because of COVID-19 to request forbearance (up to 180 days) on the loan, regardless of delinquency status. The borrower will not accrue any additional fees or penalties beyond the regular amounts.

What is a Student Loan Suspension: Requires lenders to suspend payments on federal student loans through Sept. 30. Interest will not accrue and nonpayment during the six-month period won’t affect credit scores or an individual’s qualification for loan forgiveness.

Are there any Additional Tax Deductions: Allows individuals (who don’t itemize their deductions) to make a cash donation of up to $300 to certain qualifying charities. The additional contribution can be deducted “above the line,” so the taxpayer would receive the deduction on top of the standard deduction.

Do I need to speak with a CPA:  Absolutely YES


wkCommercialGroup is solely posting this information for those interested to read.  We are not CPA's and can not represent the accuracy of this information or how it may be applicable to your specific situation. 

bottom of page