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Paycheck Protection Program (PPP)

Supporting our business members with PPP loan forgiveness guidance

At this time, federal funding for the Paycheck Protection Program has been exhausted.

Reliant members who have received PPP loans will need to apply for forgiveness.  Information is broken out on this page for one-time and two-time recipients.

Please note that additional terms, conditions, and rules may apply.  For full details, please refer to the Interim Final Rules on the U.S. Department of the Treasury’s website.

one-time PPP loan recipients

If you received funds through the Paycheck Protection Program one time only, please expand the dropdown questions below to learn more about terms, usage of funds, and the forgiveness application process.

Note that at least 60 percent of the PPP loan proceeds must be used for payroll costs.

  1. Payroll costs (as defined in the CARES Act, Economic Aid Act and the interim final rule)
  2. Costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums;
  3. Mortgage interest payments (but not mortgage prepayments or principal payments) as well as interest payments on any other debt obligations that were incurred before February 15, 2020
  4. Rent & Utility payments interest payments on any other debt obligations that were incurred before February 15, 2020
  5. Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020
  6. Covered operations expenditures (payments for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses)
  7. Covered property damage costs (costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation)
  8. Covered supplier costs (expenditures made by a borrower to a supplier of goods for the supply of goods that—(A) are essential to the operations of the borrower at the time at which the expenditure is made; and (B) are made pursuant to a contract, order, or purchase order that was in effect prior to the covered loan period. If perishable, the order may have occurred at any time before or during the covered period.)
  • Interest: 1%, fixed for the life of the loan
  • Term: 5-year term; payments are not required until loan forgiveness
    has been determined
  • Fees: No fees
  • Loan forgiveness: All or a portion of the loan may be forgiven if the business complies with rules regarding usage of the funds
  • Collateral: Collateral or personal guarantees are not required

For additional loan details, please visit the links below from the Department of the Treasury’s website:

https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

https://home.treasury.gov/system/files/136/PPP-IFR-Paycheck-Protection-Program-as-Amended-by-Economic-Aid-Act.pdf

First-time PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60% of the proceeds are spent on payroll costs

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

For full details, including forgiveness application and instructions, visit https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-loan-forgiveness.

two-time PPP loan recipients

If you received more than one Paycheck Protection Program loan, please expand the dropdown questions below to learn more about terms, usage of funds, and the forgiveness application process.

Note that at least 60 percent of the PPP loan proceeds must be used for payroll costs.

  1. Payroll costs (as defined in the CARES Act, Economic Aid Act and the interim final rule)
  2. Costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums
  3. Mortgage interest payments (but not mortgage prepayments or principal payments), as well as interest payments on any other debt obligations that were incurred before February 15, 2020
  4. Rent & Utility payments
  5. Interest payments on any other debt obligations that were incurred before February 15, 2020
  6. Refinancing an SBA EIDL loan made between January 31, 2020, and April 3, 2020
  7. Covered operations expenditures (payments for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses)
  8. Covered property damage costs (costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation)
  9. Covered supplier costs (expenditures made by a borrower to a supplier of goods for the supply of goods that—(A) are essential to the operations of the borrower at the time at which the expenditure is made; and (B) are made pursuant to a contract, order, or purchase order that was in effect prior to the covered loan period. If perishable, the order may have occurred at any time before or during the covered period.)
  • Interest: 1%, fixed for the life of the loan
  • Term: 5-year term; payments are not required until loan forgiveness
    has been determined
  • Fees: No fees
  • Loan forgiveness: All or a portion of the loan may be forgiven if the business complies with rules regarding usage of the funds
  • Collateral: Collateral or personal guarantees are not required

For additional loan details, please visit the links below from the Department of the Treasury’s website:

https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

https://home.treasury.gov/system/files/136/Interim-Final-Rule-Paycheck-Protection-Program-Second-Draw-Loans.pdf

Second-time PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60% of the proceeds are spent on payroll costs

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

For full details, including forgiveness application and instructions, visit https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-loan-forgiveness.

Disclosures

The information presented here should not be considered legal or accounting advice, and should not substitute for legal, accounting, or other professional advice in which the facts and circumstances may warrant. We encourage you to consult legal counsel as it pertains to your own unique situation(s) and/or with any specific legal questions you may have.