Will You Apply For A Paycheck Protection Program Forgivable Loan?

DDMS IconNever Miss Another Deal - Follow DansDeals on Facebook

One of the signature components of the Coronavirus Stimulus Bill/CARES Act is the Paycheck Protection Program, or PPP.

It’s funded with $349 billion, but President Trump says he’s committed to getting more funds if needed.

The PPP offers a loan for contractors, self-employed individuals, and small businesses under 501 employees in the amount of 2.5 times their average monthly pay.

There are exclusions for which types of businesses can qualify, so you should speak with your accountant and bank for clarification before applying for a loan.

The loan has a 2 year term and 1% interest rate, with all payments deferred for 6 months. No collateral or personal guarantee is needed and no loan fees will be charged.

Businesses must certify under penalty of law that the current economic uncertainty makes the loan necessary to support ongoing operations.

You can find the PPP loan application form here.

Businesses can file now with the bank where they maintain a business checking account. Contractors and self-employed individuals can file through their bank starting on 4/10.

For example if you bank with Chase you can apply here and if you have Bank of America you can apply here.

In other words if a company has 5 employees that made $60,000 each in 2019, the company can get a loan of $62,500 ($60,000 annual income/12 months x 5 employees x 2.5 their average monthly pay).

If you spend the loan proceeds on payroll, rent, mortgage interest, or utilities over the 8 weeks after getting the loan, and you maintain employee compensation levels, the loan will be forgiven. You’ll have to use 75% of the loan proceeds on payroll for forgiveness of the full loan.

Employees that made more than $100,000 in 2019 will have their loan amount capped at $100,000 of annual income for the formula. That means if a business has 5 employees that made $120,000 each in 2019, the company can get a loan of $104,167 ($100,000 annual income/12 months x 5 employees x 2.5 their average monthly pay).

Companies can only get a loan for employees on payroll, not for contractors that they pay.

The same formula will apply for contractors and self-employed individuals, with the same cap of $100,000 annual income for the loan formula.

Will you or your business apply for a PPP loan? Which other parts of the CARES Act will you benefit from?

Leave a Reply

62 Comments On "Will You Apply For A Paycheck Protection Program Forgivable Loan?"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.


Please reply with the name of bank, if anyone was successfully able to apply, and did anyone receive approval and funds?


You do not need to apply with your bank. You can apply through crossriver.com/pop
Eastern Union Funding, a mortgage brokerage firm is helping people apply through them.
Use code 4530 so that they can help expedite your loan.


Is Crossriver faster than Chase?


The address got auto corrected. Its crossriver.com/ppp

Harold Brand

Yes, we plan on applying as soon as our bank (Citi) is ready to accept applications.


Can you get both this loan AND file for unemployment (under the special provisions of the new law)?


Yep, applied this morning with Chase


Applied? Or just filled out their information form?


Dan, what do you think the government should ask for in return for this loan. Thoughts?


are 1099’s included?


Applied today with Chase


What about an owner/employee. Does their salary get accounted for in the loan.


How does a self employed person determine salary?


Can this work even if i never declared the income from my at home business? Will they ask for a 1099-MISC?


You should always declare your income for obvious reasons.

You know that a portion of your utilities and home improvements/repairs are deductible when you have a home-based business.


Any reason to apply via eastern union and not directly with a large bank?


is there a preference witch bank to use?
I bank with Chase, but I see a link to cross-river
is 1 easier than the other?


Are all the “nonprofit” yeshivas eligible?




Interesting. So they shouldn’t continue to claim that they need my full tuition payment “to ensure the teachers get paid”.


I’d argue that in the majority of cases, the loan could only be used to cover the payroll gap, not to refund parents that already paid/committed to pay.

Otherwise, how could the school sign: “the current economic uncertainty makes the loan necessary to support ongoing operations”

It is only necessary if they refund tuition.


I’m not sure I follow the logic? Right now, all schools are completely closed. What industry has been more impacted by the situation than one which has been mandated by LAW to close?? It would be extremely easy to explain why teachers need their hours reduced, because schools are required to close. There would be no problem at all for a school to sign that statement.


Those who applied through Chase, how did you apply? I received an email from them this morning that I would either be contacted by a representative or would receive an email to apply online. Thank you very much!


As an independent contractor, is there loan forgiveness, similar to a regular company?

Barry D

Sorry if I am missing this somewhere in the post above, do you have to be a Non-profit for this?

I started with a partner a new restaurant, the last week of December 2019 and we didn’t take a paycheck till the second week of January 2020, we had 3 full time employees and a couple of part time employees. Does this disqualify us from this program?



@Dan, Would you be able to explain the difference between the PPP program and the EIDL Program?


If I have 2 businesses that I own, one is S Corp and other is sole proprieter, can I apply for the PPP and Economic Injury disaster loan advanc’ twice?




I am an Occupational Therapist, don’t have an employee, I work myself… Do I qualify? And what will it take for the loan to be forgiven? (Sorry if its in article already, I’m confused). Thanks


for those who applied thru chase. did you actually apply or sent an email and are awaiting a rep to contact you


How would a 1099 prove the money was spent on payroll? I believe that’s needed in order for the loan to be forgiven


Waiting for my Bank to apply for the PPP. Also big benefit as I have an existing SBA loan, under the CARES Act, they will now pay 6 months of Principal and Interest!

Chaim green

What payroll period should I be using for the 12 months?
2019 or the last 12 months ?


We have Wells Fargo


Do they check credit before approving the loan ?

Barry Olliff

We’ve had a 20 year relationship with Wells Fargo.
They are restricted in terms of their ability to participate in PPP.
As they are the only bank we have a relationship with, any ideas regarding access to funds?

scotty j

does anyone know how to access the appication thru citi bank

the PPP loan


They still don’t have an application up yet. Citi is a mess. I would try another lender as the money will dry up fast. Although there could be a second wave of funds coming.

David Langer

I do my business banking through fidelity investments (they probably have a 3rd party bank managing the account). They don’t do SBA loans or the PPP after calling them. Every major bank demands you have a business checking account with them. Is there somewhere where I can get this loan?


I am a mortgage loan officer ( I only get paid when I bring/ close the deal)
Currently there is no work .
Would I be able to apply for this program ?

Richard Harpster

Bank America has been our bank for 25 years. When I tried to get a PPP loan I was told they could not help me because I did not have a corporate credit card with them and did not owe them anything on a loan. When I went to other banks in my area they told me that since I did not have an account with them on February 20, 2020 they could not help me. I have no way to get the loan.


Dan can you do this loan if you also did the sba emergency loan with the 10k advance that will be forgiven?


I applied with Chase on 4/9. Still haven’t heard back! Anyone willing to state when you applied and if you were approved or denied or still waiting?
Secondly, I accidentally missed a call from Bank of America but I don’t have any credit cards or anything with them. Do you think they are enlisting their call centers to follow up?
Good luck to everyone!

Santander Customer

I got an email from Santander Bank saying that although I’m on the waiting list to apply, the funds have been depleated on the 16th.