Businesses (or eligible private nonprofits) that were in operation prior to February 15, 2020 that can demonstrate they have payroll and payroll tax expenses, provided they have 500 or less employees (or that they meet the applicable size standard for the NAICS-based industries as provided by SBA, if higher). Sole proprietors, independent contractors, and other self-employed individuals as defined by the SBA may apply beginning April 10, once further guidance from SBA is published. The CARES Act waives affiliation rules for businesses in the hospitality and restaurant industries, franchises that are approved on the SBA’s Franchise Directory and small businesses that receive financing through the Small Business Investment Company (SBIC) program.

You should use the proceeds from these loans on your: Payroll costs, including benefits, Interest on mortgage obligations, incurred before February 15, 2020, Rent, under lease agreements in force before February 15, 2020 and utilities, for which service began before February 15, 2020.

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.