About PPP

The first iteration of the program (now referred to as PPP Round 1) was passed in March of 2020, with more funding added to it in April. A second stimulus package and PPP were passed on December 27, 2020 (known as PPP Round 2), which added more funding and expanded the types of expenses that businesses are able to use the funds for.

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The goal of this loan is to cover your operating expenses for 8-24 weeks, so that you can maintain your employee count and level of compensation. Therefore, the amount you are able to borrow and the length of time your loan payments are deferred are based on documentation of your company's average 2019 or 2020 payroll expenses. The loan is entirely forgivable, as long as you meet spending and documentation requirements.

 

PPP Round 2 has ended:

• If you did not previously receive funding, you may have applied through ECDI, as a first-time applicant.  

• If you did previously receive funding, you may have requested a second draw of funding through the lender who administered your first loan.

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Benefits of the PPP loan:

• All small businesses in operation prior to February 15, 2020 are eligible​.

• The loan covers expenses for 8-24 weeks, starting from disbursement. (Loans made before June 5, 2020, covered only 8 weeks.)

• Loans made after June 5, 2020, have a 1% interest rate and a five-year maturity rate. (Loans made prior to that date have a two-year maturity rate.)

• PPP loans are forgivable: as long as you meet all forgiveness requirements listed below, the loan effectively becomes a non-taxable grant.

• If you do not fully meet the forgiveness requirements, part of your loan may still be eligible to be forgiven. (It's not "all or nothing.")

• If any part of your loan is required to be paid back, you do not begin making payments until either your forgiveness application is processed (which could be up to several months), or 10 months after your 8- to 24-week covered period ends.

• No collateral or personal guarantees are required.

• There are no fees.

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PPP loans are fully forgivable

PPP loans are 100% forgivable (meaning you will not be required to pay back the loan) if you meet all forgiveness requirements.

 

Basic forgiveness requirements:

• Maintain employee and compensation levels (there is a safe harbor for companies that are unable to maintain pre-COVID employee levels due to reduction in business)

• Spend at least 60% of loan funds on payroll costs

• Spend up to 40% of funds only on other eligible expenses

• Provide required forgiveness documentation before the end of your 8- to 24-week loan period (or 8-week loan period for loans made prior to June 5, 2020)

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What happens if forgiveness requirements are not met

If you are unable to fully meet the forgiveness requirements, the SBA may not forgive part or all of your loan. You will be required to repay any unforgiven portion at an interest rate of 1%, over five years. 

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Who is eligible to apply

Any small business, including sole proprietorships, independent contractors, self-employed individuals, S and C corporations, and nonprofits (including churches, veterans organizations and tribal businesses), that was open on or prior to Feb. 15, 2020 is eligible to apply.

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First-time applicant eligibility requirements

• Must be a small business - usually defined as having less than 500 employees.

  • ​The employee count varies for some industries. Check the SBA's sizing guide to confirm that your company is a small business.

• Must have been open on or before Feb. 15, 2020

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Second draw applicant eligibility requirements

• Used or will use the full amount of your first draw PPP loan for eligible uses

• Has no more than 300 employees

• Can demonstrate at least a 25% reduction in gross income between comparable quarters in 2019 and 2020

• Not eligible to apply through ECDI; please contact the lender for your first loan

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ECDI is designated as PPP loan administrator in all 88 counties in Ohio

For Indiana and Kentucky counties in the Greater Cincinnati Area, ECDI is able to administer Working Capital and other loans. (Find PPP lender outside of Ohio.)

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Eligibility update as of Mar. 5, 2021: 

Previous exclusions have been lifted so that applications that previously would have been denied will now be accepted from business owners who:

• Have student loan delinquency

• Have​ non-fraud felony convictions

• Are lawful U.S. residents with an Individual Taxpayer Identification Number (ITIN)

 

If your application was previously denied due to having student loan delinquency, you may reapply.

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Eligible uses of funds

PPP loans can be used to help fund payroll costs (including benefits), mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Full list of eligible uses.

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Borrower beware: As part of your application, you'll have to certify that you will spend the funds in the appropriate way. If you do not spend the funds appropriately, you could be charged with fraud. (Plan ahead to keep good records of all your expenses!) 

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ECDI is unable to accept new PPP applications.

The PPP program has ended. ECDI is no longer accepting applications as of 11:59 p.m. EST on Sunday, May 23.

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Determine your max loan amount and covered period

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UPDATE: As of Mar. 5, 2020, businesses may use their income or profit in addition to payroll costs to determine their max loan amount. This change is intended to help very small companies (those with less than 20 employees).

 

Max loan amount

Use these worksheets to calculate the maximum amount you can borrow, based on your tax records from either 2019 or 2020 (your choice):

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• Schedule C filers with employees
  Printable PDF | Excel Sheet with Calculations

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• Schedule C filers with no employees
  Printable PDF | Excel Sheet with Calculations

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• LLCs (Schedule C filers) with employees
  Printable PDF | Excel Sheet with Calculations

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Covered period

Your covered period is the length of time between when the funds are disbursed to you, and the date by which you must spend all of your PPP loan funds. You have 10 months after the end of the covered period to file for forgiveness before you are required to begin paying back your loan.  

 

You are responsible for determining your covered period. It should represent the length of time your requested loan amount will cover your eligible expenses. (Just remember, you must document how you spend the money in order for your loan to be forgiven. )

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To determine your covered period, review the list of eligible expenses, keeping in mind that 60% of your requested loan amount must be spent on payroll expenses. Then determine how long it will take you to spend the loan amount you're applying for.

 

A helpful guideline: 2.5 times your average payroll costs will be spent in roughly 10 weeks, if you use the loan for payroll only. 

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ECDI is unable to accept new PPP applications.

 

1. Review the information provided on this page

Familiarize yourself with the PPP loan details and forgiveness requirements to make sure you will benefit from this program.

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2. Open a PPP-dedicated bank account

This is a required step. Keeping a separate account will prevent your PPP funds from becoming comingled with funds you are using to pay non-eligible expenses, helping you avoid issues in filing for forgiveness.

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3. Determine your max loan amount and covered period

Use the instructions and worksheets provided above.

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4. Refine your business plan accordingly

In order to qualify for forgiveness, you must spend your PPP funds on only eligible expenses, within the covered period. Make sure your business plan is aligned accordingly.

 

If the requirements of the PPP loan will not allow you to fully accomplish your goals, ECDI offers a Working Capital Loan (non-forgivable) to PPP borrowers, which can serve as a companion, supplement or alternative to your PPP funding.

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5. Gather all items on the application checklist:

​Company documentation:

• Your company's average monthly payroll costs (per the instructions above)​

• 2019 or 2020 proof of payroll costs (tax records)

• PPP-dedicated business banking account numbers for electronic funds transfer (routing and account numbers are needed)

• Active Secretary of State entity filing

Personal documentation for you or any person who owns 20% or more of your business:

• Social security number or taxpayer identification number (TIN) and employer identification number (EIN)

• Driver's license or passport 

• Email address

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Download printable checklist

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View sample application

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After you have gathered all the documentation on the checklist: