SBA Paycheck Protection Program

With new funding approved for the PPP program, we will resume processing previously submitted applications that did not receive funding in the first round in the order in which the application was received.  If you previously submitted an application, you do not need to re-submit. We are currently accepting new applications from existing members only at this time.

*Subject to change.  Please check this page for updated information.

The Paycheck Protection Program

The Paycheck Protection Program (“PPP”) authorizes up to $349 Billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.  Businesses, including non-profits, sole proprietorships, and independent contractors, with fewer than 500 employees are eligible to apply.  Loan amounts are based on 2.5x your company’s average monthly payroll expense and will generally be based on your prior year’s expense.

Loan payments will be deferred for 6 months, and the loan will be eligible to be forgiven as long as:

The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made, and Employee and compensation levels are maintained.

For amounts that are ineligible for forgiveness, the maximum loan term will be 2 years, with interest rate of 1.00%.

Who Can Apply:

All businesses – including nonprofits, veteran’s organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.

    • Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

    • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

What Information is Required:

Information demonstrating that a borrower had employees for whom the borrower paid salaries and payroll taxes on or around February 15, 2020;

Eligible documents include:

Payroll processor records
Payroll tax filings
Form 1099-MISC

For Sole Proprietorships and Single Member LLCs with no employees, please provide:

 
  • 2019 IRS Form 1040 Schedule C (This is required whether it has been filed or not)
  • If applicable, 2019 IRS Form 1099-MISC detailing nonemployee compensation received (box 7)
  • Invoice, bank statement, or book of record establishing you were self-employed in 2019 and a 2020 invoice, bank statement, or book of record establishing you were in operation on February 15, 2020.

For Sole Proprietorships and self-employed individuals with employees, in addition to the above information, please provide the following:

  • IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements), along with documentation of any retirement or health insurance contributions
  • Payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date

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.

All borrowers must complete an application, found here.

Please email BusinessServices@vermontfederal.org when applications and supporting documentation are ready to be submitted. We will work with you to securely provide the information. Applications will be reviewed in the order in which they are received.

For More Information:

For additional details, please visit the SBA website by clicking here.

Our Business Services team is here and ready to support local businesses. We encourage our business members to contact us to discuss loan repayment and short-term financing options.