First United is an SBA authorized lender with delegated authority. Lenders with this delegated authority are given the ability to determine eligibility and credit worthiness without going directly to traditional SBA channels.

Beginning February 15, 2020 and ending June 30, 2020 for eligible businesses.

You are eligible for a loan if you are a small business that employs 500 employees or fewer, or if your business is in an industry that has an employee-based size standard through SBA that is higher than 500 employees. In addition, if you are a restaurant, hotel, or a business that falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and Food Services,” and each of your locations has 500 employees or fewer, you are eligible. Tribal businesses, 501(c)(19) veteran organizations, and 501(c)(3) nonprofits, including religious organizations, will be eligible for the program. Nonprofit organizations are subject to SBA’s affiliation standards. Independently owned franchises with under 500 employees, who are approved by SBA, are also eligible. Eligible franchises can be found through SBA’s Franchise Directory.

Yes. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.

• The maximum loan amount under the program is the lesser of:
  • the average total monthly payments by the applicant for payroll costs incurred during the 1-year period before the date on which the loan is made multiplied by 2.5*;
  • plus the outstanding amounts of any Emergency Injury Disaster Loan (EIDL) obtained on or after January 31, 2020 which is to be refinanced under this loan; OR
  • $10,000,000

    *Special rules exist for seasonal employers and businesses not in existence beginning 2/15/2019 and ending on 6/30/2019.

To better assist our businesses, we have developed a simple form that you can use to estimate your maximum loan amount based on these eligibility requirements.

Between February 15, 2020 and ending June 30, 2020, eligible recipients can use the proceeds from the loan for:

• payroll costs;
• costs related to the continuation of group health care benefits during periods; of paid sick, medical, or family leave, and insurance premiums;
• employee salaries, commission, or similar compensations;
• payments of interest on any mortgage obligation (excludes prepayment);
• rent (including rent under a lease agreement);
• utilities; and
• interest on any other debt obligation that were incurred before the period.

• salary, wage, commission, or similar compensation;
• payment of cash tip or equivalent;
• payment for vacation, parental, family, medical or sick leave;
• allowance for dismissal or separation;
• payment required for the provision of group health care benefits, including insurance premiums;
• payment of any retirement benefits; or
• payment of state or local tax assessed on the compensation of employees;
• the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount not exceeding more than $100,000 in 1 year, as prorated for the period beginning on February 15, 2020 and ending on June 30, 2020.

• the compensation of an individual employee’s in excess of an annual salary of $100,000 as prorated for the period beginning on February 15, 2020 and ending on June 30, 2020;
• taxes imposed or withheld under FICA (Social Security and Medicare), Railroad Retirement Act, and IRC Chapter 24 (income tax at source);
• any compensation of an employee whose principal place of residence is outside the United States;
• qualified sick leave or family leave wages for which a credit is allowed under the Families First Coronavirus Response Act.

• Nonrecourse – The Administration (SBA) has no recourse against any individual shareholder, member, or partner of an eligible recipient of a covered loan for nonpayment of any covered loan UNLESS it is used for a purpose not authorized.
• No Guarantee – Between February 15, 2020 and ending June 30, 2020, no personal guarantee is required for the covered loan AND no collateral is required for the cover loan.
• No Fees – Between February 15, 2020 and ending June 30, 2020, with respect to covered loan, the Administrator will not collect a fee.

Between February 15, 2020 and ending on June 30, 2020, the Administration (SBA) provides complete payment deferment relief for impacted borrowers with a loan for a period of not less than 6 months and not more than 1 year. This includes the payment of principal, interest, and fees.  An impacted borrower is an eligible receipt who was in operation on February 15, 2020 and has an application for covered loan that is approved or pending after the date of enactment.

• An individual or entity that is eligible to receive a covered loan is eligible for forgiveness of indebtedness on that loan in an amount equal to the sum of the following costs incurred and payments made during the 8-week period beginning on the date of the origination of a covered loan:
  • payroll Costs (reference definition above);
  • any payment of interest on any covered mortgage obligation
  • any indebtedness or debt instrument incurred in the ordinary course of business that is a liability of the borrower, is a mortgage on real or personal property and was incurred before 2/15/2020;
  • any payment of a rent obligation made under a leasing agreement in force before 2/15/2020;
  • any utility payment related to the distribution of electricity, gas, water, transportation, telephone or interest access for which service began before 2/15/2020.

The loan is forgiven at the end of the 8-week period after you take out the loan. Borrowers will work with lenders to verify covered expenses and the proper amount of forgiveness.

No, if the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate according to the loan terms agreed upon by you and the lender.

The terms of the loan not forgiven may differ on a case-by-case basis. However, the maximum terms of the loan feature a 10-year term with interest capped at 4 percent and a 100 percent loan guarantee by the SBA. You will not have to pay any fees on the loan, and collateral requirements and personal guarantees are waived. Loan payments will be deferred for at least six months and up to one year starting at the origination of the loan.

• The following must be provided to the Lender:
  • documentation verifying the number of full time equivalent employees on payroll and pay rates including payroll tax filings reported to the IRS and State income, payroll, and unemployment insurance filings;
  • documentation, including cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage obligations, payments on covered lease obligations, and covered utility payments.
  • certification from a representative of the eligible recipient authorized to make such certifications that:
    • the documentation presented is true and correct; AND
    • amount for which forgiveness is requested was used to retain employees, make interest payments on a covered mortgage obligation, make payments on a covered rent obligation, or make covered utility payments;
  • any other documentation the administrator determines is necessary.
• No eligible recipient shall receive forgiveness without submitting to the lender that is servicing the covered loan the documentation required.
• The timing of Loan Forgiveness Decision will be no later than 60 days after the date on which a lender receives an application for loan forgiveness from an eligible recipient, the lender will issue a decision on an application.
• Any amount which would be includible in gross income of the eligible recipient by reason of forgiveness is excluded from gross income.

• The amount of loan forgiveness may be reduced if there is a reduction in full time equivalent employees when comparing to the average number of full time equivalent employees per month employed by the eligible recipient during the period beginning February 15, 2019 and ending on June 30, 2019 OR January 1, 2020 and ending on February 29, 2020.
• Reductions also exist for certain reductions in total salary or wages of any employees in excess of 25 percent. Employees, in this instance, refer to employees who in 2019 did not receive a wage or salary at an annualized rate more than $100,000.
• Special rules for tipped workers and rehires during a certain time period.

Yes, you can take out a state bridge loan and are still be eligible for the PPP loan.

If you received an EIDL loan related to COVID-19 between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.

No. As an exercise of the Administrator’s and the Secretary’s authority under Section 1106(d)(6) of the CARES Act to prescribe regulations granting de minimis exemptions from the Act’s limits on loan forgiveness, SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation. The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.

As of May 3, 2020 – Yes. The Borrower Application Form requires applicants to certify that “The Applicant is eligible to receive a loan under the rules in effect at the time this application is submitted that have been issued by the Small Business Administration (SBA) implementing the Paycheck Protection Program.” On April 27, 2020, Treasury issued an interim final rule allowing seasonal borrowers to use an alternative base period for purposes of calculating the loan amount for which they are eligible under the PPP. An applicant that is otherwise in compliance with applicable SBA requirements, and that complies with Treasury’s interim final rule on seasonal workers, will be deemed eligible for a PPP loan under SBA rules. Instead of following the instructions on page 3 of the Borrower Application Form for the time period for calculating average monthly payroll for seasonal businesses, an applicant may elect to use the time period in Treasury’s interim final rule on seasonal workers.