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First Draw PPP Application FAQs

Please see below for some of the eligibility and terms for First Draw PPP Loans.
Information regarding new reforms announced 2/22/21 will be added to our
FAQs when we receive final guidance from the SBA.

This information is not comprehensive of program details and we encourage you to consult with your tax, legal and accounting advisors on eligibility requirements. In the meantime, more information can be found on the SBA’s First Draw PPP Loans webpages.

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How are the number of employees calculated for the exclusivity period?

During the “exclusivity period” February 24 – March 9, 2021, the SBA will only accept applications from borrowers with fewer than 20 employees. Eligibility is based on headcount, regardless of whether they are full-time, part-time or seasonal (not an FTE number).

Who is eligible for a first draw PPP loan?

Businesses eligible for a first draw PPP loan include

  • Businesses with 500 or fewer employees, including affiliates
  • Small businesses, self-employed individuals, sole proprietors, independent contractors, tax exempt non-profit organizations 501(c)(3), tax exempt veteran’s organizations, tribal business concerns, housing cooperatives, 501(c)(6) organizations, eligible news organizations and destination marketing organizations with no more than 300 employees
  • Businesses must be operational as of February 15, 2020, and either had employees for whom it paid salaries and payroll taxes, paid independent contractors or are a sole proprietorship with no employees

What is the maximum loan amount available for first draw PPP loans?

  • Borrowers may receive a loan amount up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar years 2019 or 2020
  • Maximum loan amount is the lesser of payroll costs indicated above, or $10 million

What are eligible expenses for my PPP funds?

PPP proceeds can be used to pay the following:

  • Payroll and benefits
  • Mortgage interest
  • Rent and Utilities
  • Worker protection costs related to COVID-19
  • Uninsured property damage costs caused by looting or vandalism during 2020
  • Certain supplier costs and expenses for operations

What documentation do I need for my application?

Please be ready to provide the following information with your application

  • Payroll report that covers February 15, 2020 to establish company was in operation as of February 15, 2020
  • Payroll report to show average monthly payroll from 2019 or 2020 (whichever was used to calculate loan amount)
  • IRS Form 941 from each quarter in 2019 or 2020 (whichever was used to calculate loan amount)
  • State unemployment insurance filings for each quarter in 2019 or 2020 (whichever was used to calculate loan amount)
  • Evidence of retirement and health insurance contributions, if applicable
  • If a sole proprietor or independent contractor, Form 1040 Schedule C for 2019 or 2020 (whichever was used to calculate loan amount)
  • Worksheets/spreadsheets used to support loan amount calculation

What SBA form will be used for First Draw PPP Loans?

The SBA is using SBA Form 2483 – PPP First Draw Borrower Application Form, which you’ll be able to access in our online PPP application portal (please do not submit this form to us, as applications will only be accepted through our online portal).

What do I need in order to log in?

In order to expedite the application process, we’ve loaded existing Byline Bank customer information into our portal. In order to log in, you’ll need to provide the following authentication information:

  • Business TIN (EIN or SSN)
  • Authorized representative email
  • Authorized representative personal SSN

If you have questions regarding the authentication information needed or about the PPP application process, please contact us at [email protected].

How long do I have to apply?

Borrowers can apply for a First Draw PPP Loan until March 31, 2021, or until funds are depleted

What are the forgiveness terms for my loan?

First draw PPP loans may qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained;
  • Loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60% of the proceeds are spent on payroll costs