The stimulus package includes the Paycheck Protection Program which most businesses understand is to keep employees paid during the economic crisis caused by the coronavirus pandemic. Think about it, how else do you make money if the economy is shut down?

Everyone should be aware of the SBA (Small Business Administration) application and the April 2, 2020, SBA interim rule. It pays to fully understand it! Various certifications must be made. In particular, you must certify that “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Clearly we are seeing unprecedented effects on businesses small and large. Almost every small business, professionals included, have suffered from reductions in revenues. If this is you, read carefully and get your money back! The PPP loan will certainly “support the ongoing operations” of these businesses.

Here is the list of certifications you will have to make:

• The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.
• Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.
• The funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule; I understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold me legally liable, such as for charges of fraud.
• The Applicant will provide to the Lender documentation verifying the number of full-time equivalent employees on the Applicant’s payroll as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight-week period following this loan.
• I understand that loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities, and not more than 25% of the forgiven amount may be for non-payroll costs.
• During the period beginning on February 15, 2020 and ending on December 31, 2020, the Applicant has not and will not receive another loan under the Paycheck Protection Program.
• I further certify that the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects. I understand that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.

It pays to be careful here and to make sure you apply for the EIDL (Economic Injury Disaster Loans) as will which includes up to a $10,000 grant.