Who should consider PPL?

Medium-sized businesses who need more cash Relief from the PPL program will go up to the lesser of $10M per business or 250% of monthly payroll expenses (including certain benefits), while the EIDL program is capped at $2M.
Businesses with over $65k in annual operating costs A business with at least $65k in annual operating expenses covered by the loan can get 8 weeks of that back, equalling a $10k reimbursement or more.

Who's eligible?

Any business that has been operating on February 15, 2020 (i) with less than 500 employees (including sole proprietors, self-employed, and "gig economy" individuals), (ii) which meet the SBA's existing Size Standard guidelines, or (iii) in the hospitality/food services industries with more than one physical location so long as there are no more than 500 employees per physical location. Certain restrictions may apply if you have affiliates or outside investors.
Any business who maintains payroll until at least June 30, 2020 is eligible for loan forgiveness. The amount of forgiveness is reduced proportionally by any decreased employee compensation exceeding 25% or number of employees persisting during the first 8 weeks of the loan relative to a recent qualified period Companies can correct past reductions in payroll by rehiring or remedying compensation by June 30, 2020 to receive full loan forgiveness.

What's the application process?

The current application is long and complicated. The SBA has up to 15 days to establish new rules, and it's likely that they will shorten the application dramatically. For now, talk to an SBA-approved lender to understand their requirements.
You can either apply through the SBA or directly with any number of SBA-approved lenders, like J.P. Morgan or Wells Fargo. The number of available lenders is expected to increase to meet the demand.
The application deadline is June 30, 2020.

What factors are considered by the lender?

Lender only considers whether the business was in operation as of February 15, 2020 and whether it had employees for whom it paid salaries and payroll taxes or paid independent contractors.

What paperwork will I need?

As it's set up today, this option requires a lot of paperwork. We're hopeful that the amount required will be reduced, but here are some helpful documents to have ready:

  • 3 years of income tax returns
  • Profit and loss (P&L) statement
  • Projected financial statements
  • Names and addresses of any subsidiaries
  • Business certificate or license
  • Loan application history
  • Business lease
  • Your résumé

How soon will I see relief?

Loans from the SBA have historically taken about 45 days, but we’re hopeful that funds will be distributed faster. The CARES Act is removing steps to help expedite relief, including allowing approved lenders to make decisions on applications without having to go back to the SBA for approval. The SBA is also bringing on new lending partners to help with quicker fund dispersal.

Are there any collateral, personal guarantee or credit requirements?

No collateral or personal guarantee required and no requirement that the applicant not be able to obtain credit elsewhere.