What is PPP and how do I apply?
Please note: Guidefitter has aggregated all information from external sources. This should not be taken as legal advice. A huge thank you to state outfitter & guide associations, industry associations, and others who are taking the time to communicate with their community. Together we will get through this. Resources are linked throughout the post & at the bottom of this page.
"Paycheck Protection Program (PPP): This is a loan intended to help businesses keep their workforce employed during the Coronavirus crisis."
Where can I apply?
You can apply through any existing SBA 7(a) lender or any other participating banking institutions. It is advised that you reach out to your existing lender first - an institution you already have a relationship with. Many SBA-approved banks are limiting applications to existing customers only. Otherwise, you may need to open an account with another bank or find a lender who is willing to process your PPP loan application even though your business is not currently a customer.
Find a list of participating SBA-approved financial institution here.
When can I apply?
PPP loans are available on a first-come, first-served basis. All PPP loans must be made on or before June 30, 2020.
Who can apply?
All small businesses – including nonprofits, veterans organizations, sole proprietorships, self-employed individuals, and independent contractors
Am I eligible?
If you answer yes to the following items:
How much can I borrow?
Up to $10 million or 2.5 times your average monthly payroll costs from the last 12 months (determine your average with the formula).
Forbes: How To Calculate Payroll Costs
Entrepreneur: How To Submit Your Application & Calculate Loan Amount
2 years from the disbursement date
Is collateral needed?
What fees will I pay?
Are my loans on deferment?
Yes. You will not have to make payments on your loan for six months following the date of disbursement of the loan, however interest will accrue during that time.
How can PPP loan proceeds be used?
The loan can be used for
*At least 75% of the PPP loan proceeds must be used for payroll costs.
What counts as “payroll costs”?
Payroll consists of compensation to employees (whose principal place of residence is in the US) in the form of:
Employee compensation, capped at $100,000 annualized for each employee, in the form of:
Employee benefits, including:
For independent contractor or sole proprietorship applicants:
What is excluded from “payroll costs”?
Do independent contractors count as employees?
No, independent contractors can apply for a PPP loan on their own
Can my loan be forgiven?
Yes, the loan can be forgiven up to the full principal amount and any accrued interest if the borrower:
*The SBA is due to issue additional guidance on loan forgiveness.
How do I request loan forgiveness?
You must submit a request to the lender that is servicing the loan. You will submit information on eligible uses of loan proceeds spent over the eight-week period following the date of the loan, number of full-time equivalent employees, and employee compensation.
Can I apply for more than one PPP loan?
Can I refinance an EIDL loan?
If you received an EIDL loan from 1/31/20 to 4/3/20, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan. If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan.
Am I ineligible?
You are ineligible for a PPP loan if:
What is the recourse for unauthorized use of PPP loan proceeds?
If PPP funds are used for unauthorized purposes, SBA will direct you to repay those amounts. If you knowingly use the funds for unauthorized purposes, you will be subject to additional liability such as charges for fraud. If one of your shareholders, members, or partners uses PPP funds for unauthorized purposes, SBA will have recourse against the shareholder, member, or partner for the unauthorized use.
Specialty provisions for hospitality & dining businesses
The SBA’s affiliation standards are waived for small businesses:
What information do I need to apply?
Completed Paycheck Protection Program Application (SBA Form 2483)
Documentation as necessary to establish eligibility such as:
*For borrowers that do not have such documentation, borrower can provide other supporting documentation, such as bank records sufficient to demonstrate qualifying payroll amount.
How do I apply?
Complete the PPP borrower application form:
Borrower Application Form
Submit your application through any existing SBA 7(a) lender or any other participating banking institutions. It is advised that you reach out to your existing lender first - an institution you already have a relationship with. Next, consult with your local lender as to whether it is participating in the program
Find a local lender here: Small Business Administration - Find Eligible Lenders
Find additional resources on the Guidefitter Blog.
Be part of the discussion in the Guidefitter Community Feed. We have created tags within our platform so you can ask questions, post resources, find topics you’re interested in, and join the conversation. #PPP
As professional guides & outfitters, you’re facing a unique challenge. If you’d like to narrow your conversation to guides & outfitters only, don’t forget that you can check the box that makes your post “visible only to verified guides & outfitters.”
American Outdoors Association - COVID-19 Guidance
American Outdoors Association - Webinar Recording (March 27)
Idaho Outfitters & Guides Association
IRS Tax Relief
Johns Hopkins University
Outdoor Industry Association - Webinar Recording (April 2)
Outdoor Industry Association - The Power of the Outdoors
Paycheck Protection Program: Here’s What You Need To Know (April 3)
Small Business Administration - Disaster Loan Assistance
Small Business Administration - PPP Loan
Small Business Development Center (SBDC) Network