Small Business Forgivable Paycheck Protection Program*

A guide for Small Businesses, Non-Profits and Independent Contractors

Do I Qualify?

You are eligible if you are:

• A business with fewer than 500 employees (including all full-time, part-time and any other status employees)
• A small business that otherwise meets the SBA size standard
• A 501(c)(3) with fewer than 500 employees
• A sole proprietor
• An independent contractor
• Self-employed and regularly carry on a trade or business
• A tribal business that meets the SBA size standard
• A 501(c)(19) veterans organization that meets the SBA size standard

You may be eligible according to these special rules:

• If you're in the accomodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis
• If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company, the normal affiliation rules do not apply

How much can I borrow?

You can borrow up to 2.5x your average monthly payroll costs, not to exceed $10 million.

For a list of included and excluded payroll costs, click here.

What will The Commerce Bank be looking for?

We will consider whether you were in operation before February 15, 2020 and had employees for whom you paid salaries and payroll taxes or paid independent contractors.

We will also ask for good faith certification that:

1. The uncertainty of current economic conditions makes your loan request necessary to support ongoing operations
2. You will use the loan proceeds to retain, hire or rehire workers and maintain payroll or make mortgage, lease and utility payments
3. You do not have an application pending for a loan duplicative of the purpose and amounts applied for here
4. You have not received a loan duplicative of the purpose and amounts applied for here from Feb. 15, 2020 to Dec. 31, 2020¹



If you are an independent contractor, sole proprietor or are self-employed:

We will also be looking for certain documents such as payroll tax filings, Forms 1099-MISC and income and expenses from the sole proprietorship.

You will not be disqualified if you:

• Have sought and were unable to obtain credit elsewhere
• Do not have a personal guarantee
• Do not have collateral

How much of my loan can be forgiven?

You are eligible for loan forgiveness equal to the amount you spent on the following items during the 8-week period beginning on the loan's date of origination:

• Payroll costs (using the same definition outlined above)
• Interest on your mortgage obligation incurred in the ordinary course of business
• Rent on a leasing agreement
• Utility payments (electricity, gas, water, transportation, telephone or internet)
• Additional wages paid to tipped employees

The loan forgiveness cannot exceed the principal.

How could the forgiveness be reduced?

If you have a reduction in your number of employees or a reduction of more than 25% in wages paid to employees, the amount of loan forgiveness is reduced.

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¹There is an opportunity to fold emergency loans made between Jan. 31 2020 and the date this program becomes available into a new loan

* Subject to SBA approval. Restrictions may apply. See banker for details.