On March 27th President Trump signed in to law the CARES Act also known as the Paycheck Protection Program. Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

An Coronavirus Relief Loan can be used for the following:

  • Payroll Support
  • Paid Sick Or Medical Leave
  • Insurnace Premiums
  • Mortgage Payments
  • Rent
  • Utilities

In order for your business to meet the eligibility requirements for a Coronavirus Relief Loan, it must be operational as of February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractors.

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Program Highlights

  • No Minimum Credit Score
  • Loan Amounts Up To $10 Million
  • Loan Is Unsecured - No Personal Guarantees
  • Interest rates start at 4%
  • Eligbile For Loan Forgiveness
  • 10 Year Term


Use of Proceeds

  • Business Use Only - payroll support, paid sick or medical leave, insurance payments, mortgage payments, utilities, etc.


  • Who Is Eligible?
    • Small businesses & 501(c)(3) nonprofit with less than 500 employees
    • Sole-proprietors, independent contractors, and other self-employed individuals
    • Businesses with more than one physical location qualify so long as total combined employees are below 500 employees (unless the businesses operated under NAICS code beginning with 72) or otherwise meet the SBA’s size standard based on NAICS code.
    • If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis
    • Business must be operational as of February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor.
  • Other Conditions & Requirements
    • Cannot apply for any other programs through the SBA for the same purpose.
    • If a borrower has an EIDL Loan unrelated to COVID-19, borrower is still eligible./li>
    • The emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven under the Paycheck Protection Program.
    • Eligible borrowers will be required to make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19; they will use the funds to retain workers and maintain payroll, lease, and utility payments; and are not receiving duplicative funds for the same uses from another SBA program.

Loan Amounts

  • How Much Can I Borrow?
    • Loans can be up to 2.5 x the borrowers average monthly payroll costs, not to exceed $10 million
    • How Do I Calculate My Average Monthly Payroll Costs?
    • Sum Of Included Payroll Costs - Sum Of Excluded Payroll Costs = Payroll Costs
    • *Included Payroll Costs
    • salary, wage, commission, or similar compensation
    • payment of cash tip or equivalent
    • payment for vacation, parental, family, medical, or sick leave
    • allowance for dismissal or separation
    • payment required for the provisions of group health care benefits, including insurance premiums
    • payment of any retirement benefit
    • payment of state or local tax assessed on the compensation of the employee
    • *Excluded Payroll Costs
    • Compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the period February 15, to June 30, 2020
    • Payroll taxes, railroad retirement taxes, and income taxes
    • Any compensation of an employee whose principal place of residence is outside of the United States
    • Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act

Pre-Approval Within 24-Hours!

At 1st Commercial Lending, we pride ourselves on guiding each client through the often challenging and confusing process of business Financing. Our business Loan Specialists have over 35 years of combined lending experience and will work with you to evaluate the financial feasibility of the opportunity you are considering.

To speak with one of our business loan advisors and learn more about the Coronavirus Relief Loan program, call us TOLL FREE at (800) 341-6199 or click here to get started online.

What Our Clients Have To Say

  • 1st Commercial Lending helped me in finding the best terms that I was able to get from any lender, and then saw the process through all the way to closing the deal, capably answering all of my questions and concerns along the way.

    Of all of the lenders that I came across in this search, I found David to be the most knowledgeable and resourceful; he had thorough knowledge of his industry.

    If you have a need for financing the purchase of an agency I would highly recommend that you put 1st Commercial Lending on the "short list" of lenders that you need to give strong consideration to working with.

    Ron Tinnerman - Tinnerman Ins. Agency

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