Your Compeer Office
Blue Earth, MN

1700 Gian Drive, PO Bbox 220
Blue Earth, MN 65013
123-456-7890
[email protected]

Compeer Client Services

PPP FAQ

Who is Eligible?

  • Small businesses with less than 500 employees
  • Sole proprietors are eligible but are subject to specific requirements in order to establish the amount of the loan which they are eligible for.
  • Borrowers must provide a “good faith certification” that
    • Uncertainty of the current economic conditions makes the loan necessary to support ongoing operations;
    • Borrower will use the proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments;
    • Borrower does not have an application pending for a loan duplicative of the purpose and amount applied for here
    • From Feb 15, 2020 to Dec 31, 2020 the borrower has not received a loan duplicative of the purpose and amount applied for here

 What documents do I need?

  • The date you started your business
  • Your annual revenue
  • Business mailing address
  • Borrowers must submit such documentation as is necessary to establish eligibility (which may include):
    • Payroll report(s) detailing the defined twelve months compensation
    • Quarterly or Annual payroll tax filings
    • Documentation verifying the number of employees on payroll for the defined period
    • Annual filings (W2s and W3, etc.)
    • Severance agreements and payments
    • Payment for health care benefits
    • Payment of any retirement benefit (i.e., employer match for 401k, or SEP IRA, etc.) including statements or contribution reports
    • Form 1099-MISC
    • Income and Expense documentation of a sole proprietor
  • For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as:
    • bank records, sufficient to demonstrate the qualifying payroll amount

How much can I borrow?

  • Borrower can obtain loan for up to 2.5x the borrower’s average monthly payroll costs, not to exceed $10 million
  • Payroll costs included in calculation:
    • Compensation (salary, wage, commission, etc)
    • Leave payments (vacation, parental, family, medical, sick, etc)
    • Payments made under group health plans including the cost of insurance premiums
  • Payroll costs exclude from the calculation:
    • Compensation for employees in excess of $100,000 per year
    • Compensation for an employee whose principal place of residence is outside the US

 Will the loan be forgiven?

  • Full principal of the loan will be forgiven if spent on covered expenses during the eight week period after the loan is made, subject to SBA requirements
    • Covered expenses:
      • Payroll costs
      • Interest on mortgage obligations incurred in the ordinary course
      • Rent on leasing agreements
      • Payments on utilities
  • Forgiveness will be reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.
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