Skip to content

Paycheck Protection Program (PPP)

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The act includes a number of different programs and provisions to assist small businesses get through this difficult time.  Of the $2.2 trillion stimulus package, $350 billion has been allocated to a program called the Paycheck Protection Program (PPP).  Below is additional information that you will need to know regarding the PPP as well as the Economic Injury Disaster Loan (EIDL) already in place prior to the CARES Act. 

Important items regarding the Paycheck Protection Program (PPP)

The PPP is a loan program that is committed to helping employers retain employees through this crisis.  The program provides 100% federally-guaranteed loans up to $10 million dollars and is partially forgivable if used for specific expenses (listed below).  The program will be retroactive back to February 15, 2020, to cover the impact of workers who may have already been laid off and can now be re-hired.

Funds from this program will be allocated to small businesses on a first-come, first-serve basis.  We recommend that you reach out to your bank/lender as soon as possible (immediately) to find out if they are already an SBA approved lender and to get the process started.  As of today, only SBA lenders can assist with funding, however, the SBA and Treasury Secretary are working to extend eligibility to additional qualified lenders that do not currently participate in the program.  Your banker should be the first point of contact to verify that they will be able to assist you with the loan application.  You can find a list of SBA lenders by using the search tool on

Loan amounts will be based on the average of your organization’s annual payroll costs for the 1-year period before the date on which the loan is made multiplied by 250%.  The intent is to cover approximately 8 weeks of payroll.  If you are a seasonal employer, there is an option to take the average total monthly payroll payments based on a 12 week period between 2/15/2019 and 6/30/2019.  Loan payments will be deferred for six months.

Am I eligible?

The following businesses are eligible for the PPP:

  • You must be a small business as defined by the SBA, typically under 500 employees. 
  • Accommodation and Food Services Sector employers are eligible based on an employee count of up to 500 employees per location.
  • Not-for-profits, including religious organizations
  • Sole proprietors, self-employed, and independent contractors

What expenses can I use these funds for?

  • Payroll costs (excludes compensation to individuals in excess of $100,000 per year)
    • Employee salaries, commission, or similar compensation
    • Paid vacation, sick, medical or family leave
    • Continuation of group health insurance benefits during periods of leave
    • Retirement benefit payments
    • Payments of state and local tax assessed on compensation
  • Interest on mortgage obligations (not prepayment or principal payments)
  • Rent
  • Utilities
  • Other debt obligations

What do I need to apply? (May vary based on lender.)

  • Access to an SBA approved lender (see link above for list of current SBA lenders)
  • Annual payroll costs for the 1-year period before the date on which the loan is made
    • Make requests to your payroll provider for an annual payroll register for the period 2/15/2019-2/15/2020
  • Rent and utility costs for the 1-year period before the date on which the loan is made
  • 2018 or 2019 federal business tax return
  • 2019 Income Statement/Profit & Loss/Statement of Activities
  • Ensure that you have an understanding of the obligations you have to debtors and vendors through 6/30/2020
    • Create a budget
    • Compile documents as support for your application as it relates to expenses that you expect to incur
    • Prepare a narrative that describes why the loan request is necessary to maintain the businesses operations as a result of the pandemic’s impact

Wegner CPAs is here to help you through this process.  If you have reached out to your banker and determined that you are working with an SBA approved lender and would like assistance preparing the loan application and documents to accompany the loan, please reach out directly to your contact at Wegner CPAs or contact Pete Oettinger at or 608-355-7721 or Kate Serpe at or 608-442-1982.

If you are not currently working with an SBA approved lender, the Economic Injury Disaster Loan (EIDL) program is another resource available to small businesses.  These loans do not include a forgivable portion but can be used for the same operational expenses as the PPP.  These loans are also being provided on a first come first serve basis, and applications should be submitted directly to the SBA via the following link

Please contact your Wegner CPAs advisor for assistance with either loan program or for questions related to any of the new legislation.  Please visit our Wegner CPAS COVID-19 Resource Center for up to date information and access to information as it is made available.

Stay Tuned

Subscribe to our email list to receive COVID-19 resources as they become available.

Would you like to learn more?

Join our email list to receive our most recent blog posts, notification of upcoming seminars, and access to new resources!

Stay Connected
More Updates