Note: This page is intended for informational purposes only. For recommendations or advice specific to your business, please consult your financial professional.

For general information, see Gravity’s Small-Business Survival Kit.


Program overview

The Paycheck Protection Program authorizes up to $349 billion toward job retention and certain other expenses for Americans employed by small businesses.

The program offers loans to small businesses and is designed to provide a direct incentive for businesses to keep their workers on the payroll.

The Small Business Administration 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.


How can funds be used?

Loan funds can be used for:

  • Payroll costs, including benefits.
  • Interest on mortgage obligations incurred before February 15, 2020.
  • Rent, under lease agreements in force before February 15, 2020.
  • Utilities, for which service began before before February 15, 2020.


Gravity’s role

Gravity acts as an agent to help facilitate the paperwork and assist in completing the loan application.

There is no charge for this service.


Eligible businesses

You are eligible if you are: 

  • A small business with fewer than 500 employees 
  • A small business that otherwise meets the SBA’s size standard 
  • A 501(c)(3) with fewer than 500 employees 
  • An individual who operates as a sole proprietor 
  • An individual who operates as an independent contractor 
  • An individual who is self-employed who regularly carries on any trade or business 
  • A Tribal business concern that meets the SBA size standard 
  • A 501(c)(19) Veterans Organization that meets the SBA size standard 

In addition, some special rules may make you eligible: 

  • If you are in the accommodation 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 

REMEMBER: The 500-employee threshold includes all employees: full-time, part-time, and any other status. 

In evaluating eligibility, lenders are directed to consider whether the borrower was in operation before February 15, 2020 and had employees for whom they paid salaries and payroll taxes or paid independent contractors. 

Lenders will also ask you for a good faith certification that: 

  1. The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations. 
  2. The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments.
  3. Borrower does not have an application pending for a loan duplicative of the purpose and amounts applied for here.
  4. From Feb. 15, 2020 to Dec. 31, 2020, the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold emergency loans made between Jan. 31, 2020 and the date this loan program becomes available into a new loan) If you are an independent contractor, sole proprietor, or self-employed individual, lenders will also be looking for certain documents (final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship. 

What lenders will NOT look for:

  • That the borrower sought and was unable to obtain credit elsewhere. 
  • A personal guarantee is not required for the loan. 
  • No collateral is required for the loan. 


Eligible expenses

Included expenses 

  • Salaries, wages, commissions.
  • Tips.
  • Payment for PTO & sick time.
  • Group health care costs.
  • Any retirement benefits.
  • State & local taxes assessed.

Excluded expenses

  • Compensation exceeding $100K.
  • Federal taxes.
  • Railroad retirement taxes.
  • Compensation for anyone outside the U.S.
  • Qualified sick leave wages for FFCRA.
  • Independent Contractor Costs.


Maximum loans

Maximum loan = 2.5 x average total monthly sum of payroll costs incurred during the year prior to the loan date, not to exceed $10 million. 

For businesses not operational in 2019: 2.5 x Average total monthly payroll costs incurred for January and February 2020 

Seasonal employers: Maximum loan = 2.5 x Average total monthly payments for payroll costs for the 12-week period beginning February 15, 2019 or March 1, 2019 (decided by the loan recipient) and ending June 30, 2019.


Document checklist

All information below is current as of the April 6, 2020 Treasury guidance. We will update this information as more guidance becomes available.

All PPP loan applicants will need to provide: 

  • Drivers license for all business owners
  • Tax returns (2019 and 2018, whichever filed last)
  • Form 941 
    • Form and instructions HERE
    • Ideally, please have Form 941 for the four quarters of 2019 and, if available, the first quarter of 2020.
    • If you work with a Professional Employer Organization (PEO) and do not have IRS Form 941, please have your latest payroll report from the PEO that covers 12 months of payroll.
    • If you do not file an IRS form 941 please upload the annual IRS 944 filing from 2019
  • 1099 Misc 
    • Form and instructions HERE
  • Form 4506
  • Schedule of Liabilities
  • The start date for your business
  • NAICS code for the business applicant
    • Look up your NAICS code HERE
  • Your bank account info, routing number, statements, and voided check
  • Payroll records for the last 12 months from present 
    • Records should include individual employee headcount and any other eligible expenses deemed as payroll costs (as defined by the SBA Final Rule)
  • Proof of business activity in 2020
  • Legal documents for your business (charter, state licenses)

If your business has employees, you will likely need to provide:

  • 2019 IRS Form 940 for unemployment costs (here)
  • 2019 IRS Form 941 for quarterly salary, wages, commissions, and tips (here)
  • 2019 IRS Form 944 (here)
  • 2019 IRS Form 1099-MISC for any independent contractors that your business paid (not to exceed $100,000 for the year) (here
  • 2019 IRS Form 1040-C if your business is a sole proprietorship (see more for sole proprietors below) (here)
  • 2019 IRS Form W-3 (not required, but recommended) (here
  • Monthly payroll statements that will provide the following information
    • Salary, wages, commissions, or tips (not exceeding $100,000 annually for each employee)
    • Any costs for the separation or dismissal of employees
    • Any costs for vacation, parental, family, medical or sick leave
    • Any state & local taxes assessed on employee compensation

If your business pays for health insurance or retirement for employees, you will also need to provide the following from 1099 or W2 forms:

  • All health insurance premiums paid by the business owner under a group health plan
  • All retirement plan funding paid for by the business owner

If you are a sole proprietor or self-employed, you will likely need to provide:

  • 2019 IRS Form 1099-MISC for any independent contractors paid, not to exceed $100,000 for the year (here
  • 2019 IRS Form 1040-C if your business is a sole proprietorship (here)

Check here for detailed rules from the government.