On Friday, banks across the United States began submitting information on behalf of their small business customers into the Small Business Administration’s (SBA) e-tran portal for the Paycheck Protection Program, or PPP (or “Triple P”). PPP is part of the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, a $2 trillion economic relief package signed into law by the president last month. The loans are backed by the SBA through their lenders and are on a first-come, first-served basis.

There are several relief programs available for small businesses through the CARES Act, including the SBA Express Bridge Loan, a $25,000 infusion from an SBA express lender for immediate payroll and other needs; the Economic Injury Disaster Loan, or EIDL, which provides up to $2 million for working capital; PPP, a payroll program offering up to $10 million in payroll relief over eight weeks; the Small Business Debt Relief Program, which delivers immediate relief for 7(a) and 504 loans; and the Small Business Tax Relief Provisions, which offers refundable payroll tax credits for 50 percent of wages.

The two largest programs, PPP and EIDL, are described below.

Most small businesses with 500 or fewer employees are eligible for the payroll relief (PPP) loan. There are, however, stipulations. Proceeds must cover payroll costs, most mortgage interest, rent and utility costs for an eight-week period. If employers follow these guidelines, the loans will be forgiven. If, on the other hand, employers lay off employees, reduce their salaries, or use more than 25 percent of funds for purposes not specified in the terms, they must repay part of the loan at 1 percent interest. These payments will be deferred for six months. For more information about PPP, click here.

Unlike past stimulus packages, PPP is also available to independent contractors, self-employed individuals and sole proprietorships. But while qualifying small businesses may already submit requests, gig economy workers must wait until April 10.

Economic Injury Disaster Loans, or EIDLs, provide economic support to overcome temporary loss of revenue as a result of COVID-19 for small businesses with 500 employees or fewer. Funds come directly from the U.S Treasury, so small businesses must apply directly through the SBA. Up to $2 million will be available for working capital loans repaid over 30 years at 3.75 percent for small businesses and 2.75 percent for nonprofits. For an overview of EIDLs, click here.

The 800-plus page CARES Act provides guidance about how to allocate funds, but it is the role of the SBA and U.S. Treasury Department to create the programs designed to fulfill the act’s requirements. Both SBA and Treasury suggest those interested in the relief programs visit their websites for details about the programs instead of attempting to interpret the language in the act.

Here are a few important notes from SBA that may not appear in their fact sheets. We wrote these down during a webinar hosted by SBA’s Wichita office.

For EIDLs

The SBA’s website doesn’t have a registration process, so once you begin the application, you can’t save it and come back later. Make sure you have all the information you need before you start.
For example, know your business entity type, cost of goods sold, payroll, benefits, 12 months of operating expenses (if you don’t have 12 months worth of operating expenses, submit what you have), ownership information, ownership percentages and P&L statements.
If you’re unsure about your cost of goods sold, contact the Small Business Development Center or SCORE, which will help you calculate COGS.
EIDL has a $10,000 advance available within three days of your application which will be tacked onto your overall EIDL disbursement.
If you’re denied, contact customer support and apply again.
If you’re unsure if you qualify, apply anyway.

For PPP

Apply for PPP through your local SBA-approved lender. If you’re a small business, and you have a loan with your bank, the odds are that your bank is already an SBA-approved lender. SBA Wichita will have a list of SBA-approved lenders soon.
These loans are forgivable if you use them for payroll, mortgage interest, rents and utilities.
If you use more than 25 percent of funds for other purposes, you will be asked to repay the amount at 1 percent interest. Payments are deferred for six months.
There is no way to check the status of your application. Instead, call customer service at 1 (800) 659-2955.

In general

There are no fees required for applicants. Any fees associated with these loans are between your bank and SBA.
Anyone who asks for a credit card number or an upfront application fee is pulling a scam. If you have questions, contact your local SBA office.

There are, of course, more terms related to PPP and EIDL. For more information, visit our resources page. Nevertheless, we wanted to highlight some of the most prominent features of the relief packages for small businesses. If you have questions, SBA recommends you contact the following organizations:

The Kansas Small Business Development Center: SBDC offers no-cost advising for small businesses.
SCORE: SCORE is a nonprofit organization of retired small business professionals who want to help grow small businesses.

The Wichita Regional Chamber of Commerce put together this handy checklist.