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Paycheck Protection Program: Preparing Your Application

Make sure you have the proper information when applying for the Paycheck Protection Program. Most bank application sites are complete or nearing completion. We recommend that you begin preparing and gathering documentation that will make the process as fast and easy as possible.

What is the Small Business Paycheck Protection Program?

This Government funded relief program provides small businesses with funds to pay up to 8 weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.  (Per as of April 7, 2020)

For full details regarding this program, see the quick guide the U.S. Treasury has provided.

1. How to Determine Your Maximum Loan Amount

The maximum loan amount is based on 2.5X your 2019 average monthly payroll costs and is subject to a $10 million cap. Payroll costs will be capped at $100,000 annualized for each employee.

If you are a seasonal or new business, you will use different applicable time periods for your calculation.

For seasonal employers:

  • the period between February 15, 2019 through June 30, 2019 or;
  • at the election of the borrower, March 1, 2019 through June 30, 2019
  • For businesses not in operation during the period between February 15, 2019 and June 30, 2019
    • The period between January 1, 2020 and February 29, 2020

2. How to Determine Your Payroll Costs

Depending on your business type, one or more of the following forms of documentation are required for payroll calculation and verification. You will need to include these documents with your application.


IRS Form 941 (Quarterly Form)

  • Line 1: Lists number of employees who received wages, tips, or other compensation for the pay period
  • Line 2: Lists wages, tips & other compensation (will need to sum line 2 for the last 4 quarters to arrive at annual total)
  • Line 12: Total taxes after adjustments & credits (this number is excluded from the payroll costs calculation)

IRS Form 944 (Annual Form)

  • Line 1: Lists wages, tips, & other compensation for the entire year
  • Line 7: Total taxes after adjustments & credits (this number is excluded from the payroll costs calculation)


Sole Proprietors:

IRS Form 1040

  • Schedule C – line 31: Net profit or (loss)

What if I Don't Have This Documentation?

For borrowers that do not have the above documentation, you must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.

Additional Guidance and Details

For more detailed information and additional guidance on how to appropriately calculate payroll costs, employers can find all the latest information at

Additional documents may be requested as required