New York Forward: Small Business Recovery Hub

The Payroll Protection Program Application closed on June 30, 2020.

For a comprehensive, easy, and free guide to the PPP loan for sole proprietors and independent contractors, please click here. All of the PPP eligibility criteria and other application info are also detailed below here.

Use of Funds for Loan Forgiveness

All of the below, with the exception of interest payments on other debt obligations. The proceeds of a PPP loan were to be used for the following.

• Owner compensation replacement, calculated based on 2019 net profit as described above.
• Employee payroll costs (as defined in the First PPP Interim Final Rule) for employees whose principal place of residence is in the United States, if you have employees.
• Mortgage interest payments (but not mortgage prepayments or principal payments) on any business mortgage obligation on real or personal property (e.g., the interest on your mortgage for the warehouse you purchased to store business equipment or the interest on an auto loan for a vehicle you use to perform your business), business rent payments (e.g., the warehouse where you store business equipment or the vehicle you use to perform your business), and business utility payments (e.g., the cost of electricity in the warehouse you rent or gas you use driving your business vehicle).
• You must have claimed or be entitled to claim a deduction for such expenses on your 2019 Form 1040 Schedule C for them to be a permissible use during the eight-week period following the first disbursement of the loan. For example, if you did not claim or are not entitled to claim utilities expenses on your 2019 Form 1040 Schedule C, you cannot use the proceeds for utilities during the covered period.
• Interest payments on any other debt obligations that were incurred before February 15, 2020 (such amounts are not eligible for PPP loan forgiveness).
• Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020 (maturity will be reset to PPP’s maturity of two years). If you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, 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.

What program should I apply for?

As an average US-based business owner with 500 or fewer employees, you are likely eligible for all SBA disaster assitance programs. Do not limit yourself to just one as this greatly increases your chances to receive assistance.

Apply for the PPP, EIDL and EIDL Advance immediately.

The EIDL has an online application, there is no guarantee requirement for loans below $25,000 and there is no obligation to accept the loan if approved, and no fees. Refer below to EIDL section on how to apply.

The PPP is a “forgivable” loan, and requires processing by your local bank and a commitment to retain or re-hire your workforce when you re-open. Refer above to the PPP section on putting together your documents and how to apply. Also refer below for additional details about the PPP.

The SBA Bridge loan and debt relief are also programs for you to consider.

Click here to compare all SBA disaster programs in one place

Which bank should I use for the PPP?

In our survey of 300+ businesses, we have found smaller, community banks and CDFIs to have been easier to work with for the first round of PPP application submissions. Some community banks are accepting new business customers via phone or online sign-up and you may want to consider them. However, you should work with the lender that suits you most.

Click here to find your SBA lender & apply