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Paycheck Protection Program Summary

UPDATED August 19, 2020

The deadline to submit SBA PPP loan applications to ESL was August 5, 2020, and the deadline to submit applications to the SBA was August 8.

Under the CARES Act (the Coronavirus Aid, Relief and Economic Security Act), the stimulus provides $350 billion in funding for the Paycheck Protection Program (PPP). This program provides zero-fee loans up to $10 million. Capital to cover the cost of retaining employees with zero-fee loans up to $10 million. Up to eight weeks of average payroll and other costs can be forgiven if the business retains its employees and salary levels.

Loan Forgiveness

We look forward to supporting our customers through the PPP Loan forgiveness process. Once we begin to accept PPP Loan forgiveness applications, we will email ESL PPP Loan customers with additional information and instructions on how to apply for loan forgiveness.

Here is some information to keep in mind so you can be prepared when it’s time to file for forgiveness, should you need it.

  • The “covered period” for loan forgiveness is the earlier of either 24 weeks from the disbursement of the loan or December 31, 2020.
  • Businesses have until December 31, 2020 to rehire employees and reverse salary cuts of greater than 25 percent.
  • Borrowers are exempt from the proportional reduction in loan forgiveness due to a reduction in employees, if the borrower is able to document, in good faith, that for the period of February 15 to December 31, 2020, the borrower was unable to:
    • Rehire employees who had been employed on February 15, 2020, or hire similarly qualified employees for unfilled positions by December 31, 2020; or
    • Return to the same level of business activity at which the borrower was operating before February 15, 2020, due to compliance with federal requirements or guidance set forth between March 1 and December 31, 2020, relating to standards of sanitation, social distancing, or other worker or customer safety requirements related to COVID-19.
  • 60% of PPP loan proceeds must be used for payroll costs to qualify for loan forgiveness.
  • All payments are deferred until the date on which the amount of loan forgiveness is remitted to the lender by the SBA; however interest will continue to accrue over this period.
  • If a borrower fails to apply for loan forgiveness within 10 months after the last day of the covered period for PPP loan forgiveness, the borrower must begin to make payments of principal, interest, and fees associated with the PPP loan.

How to prepare and file for loan forgiveness:

  • Customers will be asked to submit the SBA Paycheck Protection Program Loan Forgiveness Application through our online portal.
  • Please refer to the application on the SBA’s website, so you are aware of the information that is needed to apply through the portal.
  • This application may change. We are encouraging customers to visit the SBA website, for the most recent information, prior to filing.
  • Customers will also have to compile documentation that will need to be included with the submission of your application. The full list of items needed to be submitted for forgiveness is contained in the PPP Loan Forgiveness Application Instructions for Borrowers which can be found on the SBA website.
  • We are encouraging customers to retain all records for six years after your forgiveness is processed.

For the most current information on PPP loan forgiveness, please visit the SBA website and the U. S. Treasury website.

We appreciate your understanding and patience as we all work together through these uncertain times.

Additional PPP Loan Information


Businesses are eligible for a PPP loan if the business:

  • Was in operation on February 15, 2020.
  • Has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
  • Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.

Maximum Loan Size

The maximum loan size is $10 million. Depending on your business’s situation, the loan size will be calculated as follows:

  • If you were in business February 15, 2019 – June 30, 2019 (updated on June 12): Your max loan is equal to 250 percent of your average monthly payroll costs for the 12-month period prior to the date the loan is made. If your business employs seasonal workers, average total monthly payroll payments may be based on the one of the following time periods: (1) February 15, 2019 through June 30, 2019, (2) March 1, 2019 through June 30, 2019, or (3) any consecutive 12-week period between May 1, 2019 and September 15, 2019.
  • If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020.
  • If you took out an Economic Injury Disaster Loan (EIDL) between January 31, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum.

Minimum Loan Size

  • The minimum loan size that ESL is currently accepting is $2,500.
  • If you would like to request a loan lower than $2,500, please consider our Unsecured Personal Loan.

Costs Eligible Under PPP

  • Compensation (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 employees

What costs are not eligible for payroll?

  • Employee/owner compensation over $100,000
  • Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
  • Compensation of employees whose principal place of residence is outside of the U.S.
  • Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act

Loan Terms

  • Interest rate 1.0% fixed rate percent
  • All payments are deferred until the date on which the amount of loan forgiveness is remitted to the lender by the SBA; however interest will continue to accrue over this period
  • Zero loan fees
  • Zero prepayment fee (SBA will establish application fees caps for lenders that charge)
  • Loan is due in five years for loans approved by the SBA on or after 6/5/2020
  • No prepayment penalties or fees
  • No collateral required

Additional options may be available through the SBA.

SBA Contact Information: