COVID-19 SBA Information

SBA Information for COVID-19 Impacted Businesess


PPP Application Deadline Has Passed: The Small Business Administration (SBA) reminded lenders and borrowers that they are not able to process any new PPP loan application as of August 8. Congress is negotiating Phase 4 of the stimulus package, which could include another round of PPP funding.

PPP Forgiveness FAQ: 
The Small Business Administration (SBA) provided new guidance to address borrower and lender questions concerning forgiveness of Paycheck Protection Program (PPP) loans. The Frequently Asked Questions included which loan forgiveness application is best for sole proprietors or independent contractors as well as what payroll costs, such as employer-paid health care and retirements benefits, will be eligible for forgiveness. Click here for those FAQs

PPP Deadline Extended: Businesses can still apply for a Paycheck Protection Program loan until August 8, 2020. The extension allows small businesses until August 8 to apply for the remaining PPP funding, estimated at $130 billion. Learn more here. Find the PPP loan application here.
PPP Forgiveness Changes: Businesses can benefit from increased flexibility following the passage of the Paycheck Protection Program (PPP) Flexibility Act, which became law on June 5. The biggest changes in that law is the extension of the 8-week covered period to a 24-week covered period, and a reduction of payroll costs from 75 percent to 60 percent. The Flexibility Act extends the forgiveness period through December 31. Other changes include:

  • Increasing the amount of funds available for non-payroll expenses from 25% to 40%.
  • Pushing back a June 30 deadline to rehire workers. Under the new law, businesses now have until December 31, 2020, to rehire workers in order for their salaries to count towards forgiveness.
  • Extending the repayment term from 2 years to 5 years.

Learn more here. Find the PPP forgiveness application here and instructions. Find the EZ PPP forgiveness application here and instructions.
EIDL Re-Opens to Eligible Businesses: The SBA has reopened two loan programs, the Economic Injury Disaster Loan (EIDL) and EIDL Advance up to $10,000, to eligible small and agricultural businesses and non-profit organizations. SBA is continuing to process applications on a first-come, first-served basis. Learn more here.

Direct links to these courses include: How to Write a Business PlanMarketing 101: A Guide to Winning CustomersSocial Media Marketing; and Understanding Your Customer. All courses are available at Most are 30 minutes in length.

SBA Tool to find a PPP Loan Lender: The Small Business Administration announced the launch of a dedicated online tool for small businesses and non-profits to be matched with Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders, Microlenders, as well as traditional smaller asset size lenders in the Paycheck Protection Program (PPP). 

This tool is for pandemic-affected small businesses who have not applied for or received an approved PPP loan to connect with lenders within two business days. Lender Match was on pause due to CARES Act implementation priorities and loan volume. SBA’s Lender Match is an additional resource for pandemic-affected small businesses who have not applied for or received an approved PPP loan to connect with lenders.  Lender Match does not accept Economic Injury Disaster Loan applications.

Within two business days after entering their information into the Lender Match platform, a borrower receives an email from lenders who have been matched with them.  The borrower can see lenders’ requests for them to begin an application.  Borrowers are then able to begin the application process directly from the email they receive.

Lender Match was on pause due to CARES Act implementation priorities and loan volume. It is now being reinstated for CDFIs and other Small Asset Lenders.  Leads will only be forwarded to CDFIs and Lenders with < $10b in assets until the PPP program ends on June 30, 2020, at which time Lender Match will be open to all participating SBA Lenders.  Lender Match not only connects borrowers with accessing PPP loans, but also other SBA lending products, such as 7(a), 504, Microloans, and Community Advantage loans which are currently offering debt relief.

Funding for Businesses Still Available through PPP: Businesses have until June 30 to apply for a Paycheck Protection Program (PPP) loan. The SBA is reporting more than $130 billion in funding is still available through the PPP. More than 46,000 Kentucky businesses, to date, have received PPP loans valued at $5.2 billion.
The SBA and U.S. Treasury issued a joint statement last week following the enactment of the Paycheck Protection Program (PPP) Flexibility Act. The SBA, in consultation with Treasury, issued rules and guidance (SEE PDF) and a modified borrower application form (SEE PDF) implementing legislative amendments to the PPP, including:

  • Reducing the amount of the loan needed to be spent on payroll from 75% to 60%, thus increasing the amount of funds available for other expenses from 25% to 40%.
  • Extending the time period to spend the loans from 8 weeks to 24 weeks.
  • Pushing back a June 30 deadline to rehire workers. Under the new law, businesses now have until December 31, 2020, to rehire workers in order for their salaries to count towards forgiveness.
  • Extending the repayment term from 2 years to 5 years.

 If approved for a loan, the Flexibility Act extends the forgiveness period through December 31.

PPP Loan Flexibility: The Senate and House passed legislation last week to give business owners more flexibility and time to use loan money and still get it forgiven as part of the Paycheck Protection Program. HR 7010 extends loan forgiveness for expenses for up to 24 weeks and removes the limitation that restricts non-payroll expenses (rent, utilities) to 25% of the loan, among other revisions.

The key provisions of the law include:

  • Any portion of the PPP loan that is not forgiven would have a five-year term instead of the current two-year term. Applies only to PPP loans received after the date of enactment of this Bill, however, borrowers and lenders with existing PPP loans can modify the terms of those loans to correspond to the terms of the Bill.
  • Program term would be extended to December 31, 2020 from June 30, 2020.
  • Covered period would be extended from the current eight weeks to earlier of 24 weeks from date proceeds deposited or December 31, 2020. Borrowers with existing loans could elect to retain the existing 8 weeks.
  • Safe harbor restoration deadline date provisions (FTE and Salary/Wage Reduction) would be moved to December 31, 2020 from June 30, 2020.
  • Added another new safe harbor provision to remove the FTE reduction in forgiveness. Require-ments to meet the new safe harbor is that the borrower can document:
    • Inability to rehire individuals who were employees on 2/15/20 and the inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020, or
    • Inability to return to the same level of business activity as such business was operating at before February 15, 2020 due to compliance with requirements established or guidance issued by Secretary of Health and Human Services, Director of the Center for Disease Control or OSHA during period 3/1/2020 and ending 12/31/2020, relating to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.
  • Change the existing 75% requirement for minimum spend on payroll costs down to 60%. [Note: Existing 75% limitation is derived by dividing total payroll costs by 75%].
  • Deferral of payments on the PPP loan until such time as the final forgiveness amount is remitted to the lender by the SBA.
  • Borrowers would be required to request forgiveness within 10 months of the last day of their 24 week covered period (8 week covered period if making election to retain) or payments would be required to begin at that time.
  • Would remove any restriction on a borrow to defer payment of employer payroll taxes. Currently, can only defer until borrower receives forgiveness of PPP loan.

Business Loans: The Federal Reserve's Main Street Lending Program (MSLP) is expected to roll out this week. The program is designed to provide financial support to companies that have been hurt by the coronavirus pandemic but were too big to qualify for loans in the Paycheck Protection Program (PPP). The program is set to run until Sept. 30 and has the ability to fund up to $600 billion in loans. Learn more by clicking here

PPP Loan Forgiveness: A Step-By-Step Video Explanation: The U.S. Chamber has released a new video which provides a step-by-step explanation of the Payment Protection Program (PPP) loan forgiveness process. In the video, U.S. Chamber executive vice president and chief policy officer Neil Bradley walks you through the essential steps of the loan forgiveness process, including calculations and repayment terms. Click here to watch the video.

SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application: On Friday, May 15, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. 
The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the CARES Act. SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.

The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including: 

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans. Click here to view the application and instructions.

PPP Loan Update: The Treasury Dept. continues to issue information and guidelines on the SBA’s Paycheck Protection Program. Recent updates include Eligibility of Certain Electric Cooperatives and Frequently Asked Questions about Safe Harbor (Question #47). Click here for additional guidance.  

Ready to Reopen: A Playbook for Your Small Business: The U.S. Chamber has released a guide to helping businesses of all types and in all regions navigate the complex process of reopening and evolving post-coronavirus pandemic. Reopening and adjusting to the "new normal" will involve several steps for businesses to take, from researching, communicating, and executing plans to pivoting strategically. This guide will help you to be ready. 

Small Business Administration News on Loans: 
As the Paycheck Protection Program continues to evolve to meet the needs of small business owners and employees effectively, the U.S Small Business Administration and U.S. Department of Treasury have increased the SBA Express Maximum Loan amount temporarily to $1,000,000 through December 31, 2020. In addition, veteran-owned small businesses are eligible for an upfront guarantee fee relief for SBA Express Loans.

Some Answers for Small Businesses:
In last week’s National Small Business Town Hall from Inc. and the U.S. Chamber of Commerce, small business owners received advice and answers to their questions about emergency financial assistance available to them, as well as insights and strategies for the economic reopening. Key takeaways from the event for small businesses included these insights: 

  • There is still PPP (Payroll Protection Program) loan money available and businesses should continue to apply.
  • Employers who want to bring back employees who have been laid off will not be penalized in PPP loan forgiveness if the employee chooses not to return to work.
  • It is not known yet whether the window for loan use and forgiveness will be expanded beyond June 30, 2020.
  • Businesses need to develop and document their plans for reopening and dealing with sick employees. Ensure you’re listening to employees and have a dialogue with them about your plans and their concerns.

Update on PPP loans: The U.S. Small Business Administration still has money in the Paycheck Protection Program (PPP) loans for borrowers. The PPP loans are 100% guaranteed by SBA and the full principal amount of the loan may qualify for loan forgiveness. All businesses – including nonprofits, veterans organizations tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors with 500 or fewer employees can apply. Businesses should check with their local banks and credit unions, and SBA Lenders that are participating. Find more information below: 

CARES ACT PPP Borrower Information Fact Sheet From US Treasury Dept

SBA Loans as of May 3: 

  • PPP Round 2 so far - 2.2 million+ loans totaling $175 billion+ - in 1 week
  • SBA did 1.66 million loans in ALL of PPP Round 1
  • Avg loan size for Round 2 is $79,000 versus Round 1 average of $206,000

 KY- Loans Approved - 18,202
Approved Dollars - $1,096,947,956

Businesses can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Consult with your local lender as to whether it is participating in the program. 

The SBA issued an updated Frequently Asked Questions regarding the PPP.

Review Procedure for Paycheck Protection Program Loans: U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administrator Jovita Carranza issued the following statement yesterday on the Paycheck Protection Program (PPP): “The Paycheck Protection Program is providing critical support to millions of small businesses and tens of millions of hardworking Americans. 
“We have noted the large number of companies that have appropriately reevaluated their need for PPP loans and promptly repaid loan funds in response to SBA guidance reminding all borrowers of an important certification required to obtain a PPP loan.  To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application.  Regulatory guidance implementing this procedure will be forthcoming.
“We remain fully committed to ensuring that America’s workers and small businesses get the resources they need to get through this challenging time.”

Monday, April 27: More Federal Funding Approved for Businesses - Paycheck Protection Program Reopens with New Federal Funding: The Small Business Administration has resumed accepting PPP loan applications as of this morning. The SBA will resume processing EIDL applications that are already in the queue on a first come, first-served basis. This is the latest information: 

The PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

Businesses can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Consult with your local lender as to whether it is participating in the program.

Great News from the SBA: As of Monday, April 13, Kentucky has been approved for 17,216 loans through the Payment Protection Plan (PPP) for a total of $3,336,402,794. The SBA has produced a national report card, showing what states and what types of businesses have received the PPP loans to this point. Click here to view.
For more information on SBA, contact or call 1-502-276-7655.  Sharon is the Lender Relations Specialist/Economic Development Specialist, Western Kentucky Representative, Kentucky District Office, U.S. Small Business Administration.

UPDATED - Paycheck Protection Program (PPP) FAQ's from the U.S. Department of Treasury:

The SBA issued an updated Frequently Asked Questions regarding the PPP on April 28.

In addition to the FAQ document, the following resources provided by the Treasury Department and their webpage should provide additional information.

  • Here’s the overview of the program here.
  • If you’re a lender, more information can be found here.
  • If you’re a borrower, more information can be found here.
  • The application for borrowers can be found here.

Additional documents available from the Department of the Treasury

If you have questions, please contact Sharron Johnson, KY SBA Lender Relations Specialist, for West Kentucky or call 502-276-7655. The SBA staff is working diligently to research and answer all questions and phone calls.

Updated Guides and Paycheck Protection Program Resources: The U.S. Chamber has updated their Coronavirus Emergency Loans Small Business Guide & Checklist that outlines the steps small businesses, independent contractors, and gig economy workers should take now to access funds available through the CARES Act. The new legislation provides funding for small businesses through the Paycheck Protection Program. These loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. 

The SBA issued an interim final rule late Thursday. The interim final rule lays out additional implementation guidelines and requirements for the PPP. The new rule provides greater clarity on several issues and changes the interest rate on loans made under the program from 0.5% to 1%, a change the American Bankers Association said would encourage banks of all sizes to participate in the program.

The U.S. Chamber guide will answer these questions...
Am I eligible? Plus a break down of some special rules that may make you eligible.
What will lenders be looking for? Plus what lenders will NOT look for.
How much can I borrow? And how to calculate your average monthly payroll costs.
Will this loan be forgiven? What it means when they say borrowers are eligible to have their loans forgiven.

Click here to track aid amounts by state.

We would also encourage you to talk to your local banks to see if they have small business loans.

SBA Loans and Financial Assistance: If you are the owner of a small business or private non-profit and would like to apply to the U.S. Small Business Administration for an Economic Injury Disaster Loan, application documents are available at or you can find the individual links below.

  • The loan process generally takes 3 to 4 weeks.
  • The borrower should put the amount they are applying for on the application.
  • The borrower must also note the application is being made because of the Coronavirus driven economic injury.
  • They must have a physical location in the declared disaster area.
  • Interest rate is 3.75% for small businesses and 2.75% for non-profits, up to a 30-year term.
  • 1-year deferment of their first payment. 

For a streamlined look at the process click here.

Below are links to the forms that should provide you more information about applying.  

Kentucky Bankers Association: Attached is more information from the Kentucky Bankers Association and other organizations about this new program and how it will work with the existing disaster loans provided by the SBA as well as other relief that local lenders can provide. 

For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail  Visit for more information and updates.

Click here to view video - Small Business Administration Kentucky Division. Following our conference call with the SBA, the chamber created these overview details and reminders about the process. 

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