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On March 27, 2020 President Trump signed in to law the $2 Trillion CARES Act.  The Paycheck Protection Program is a loan in this bill designed to provide a direct incentive for small businesses to keep their workers on the payroll.  Per the SBA, the Paycheck Protection Program will be available through June 30, 2020.

Growth Commercial Capital is partnered with the top SBA lenders in the country that will be making these loans.

SBA 7(a) Paycheck Protection Program Loan

We have interpreted the following aspects of the Paycheck Protection Plan in the CARES Act. These are subject to change upon guidance from the SBA and the U.S. government.

Who is eligible as of 2/15/2020?
  • Small businesses, 501(c)(3) nonprofit, a 501(c)(19) veteran’s organization, or Tribal business concern described in section 31(b)(2)(C) of the Small Business Act with not more than 500 employees, or the applicable size standard for the industry as provided by SBA, if higher.
  • Sole-proprietors, independent contractors, and other self-employed individuals.
  • Businesses in certain industries may have more than 500 employees if they meet the SBA size standard for those industries.
  • Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers.  This means each store location could be eligible.
What is needed to determine eligibility?

Business must be operational as of February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor

How do you calculate the total loan amount?

Average monthly payroll costs including benefits, multiplied by 2.5 (capped at $100,000 on an annualized basis for each employee) – OR – $10 million whichever is less.

What is the allowable use of proceeds?

Allowable uses of the loan include eligible payroll support (eligible employee salaries which excludes compensation above $100,000 in wages, paid sick or medical leave, insurance premiums), interest paid on a mortgage (excludes any prepayment of or payment of principal) or rent, and utility payments.

What is the interest rate?


What is the term of the loan?

2-year full payout loan. There will be no prepayment penalty. Allows for complete deferment of SBA 7(a) Loan payments for at least six (6) months and not more than a year.

What collateral is required?

The loan will be unsecured.

Are personal guarantees required?


Is the Credit Elsewhere Rule enforced?


Is it true I won’t have to pay back my loan?
  • The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
  • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Other Conditions or Requirements
  • Completed SBA Paycheck Protection Program Application Form (SBA Form 2483)
  • All owners’ Driver’s Licenses (front and back)
  • IRS Form 940 and 941 (as of 12/31/19 and 3/31/20, respectively)
  • Payroll Report for February 15, 2020 (or closest date).
  • Annual Payroll Report for 2019 (calendar year through December 31, 2019)
  • If an SBA EIDL loan was made between 1/31/2020 and 4/3/2020, a copy of the note

*As of April 16th, 2020, our lending partners have paused taking new PPP applications until Congress agrees to terms and replenishes funds.  Our lender application link will be posted once new funds are available.  If you have already submitted your application to a lender, at this time, there will be no need to reapply.