First Draw Certifications

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What are the certifications for a First Draw PPP Loan?

When you apply for a First Draw Paycheck Protection Program, you certify that:

  • You have read the statements included in the application form, including the Statements Required by Law and Executive Orders, and you understand them.
  • You are eligible to receive a loan under the rules in effect at the time this application is submitted that have been issued by the Small Business Administration (SBA) and the Department of the Treasury (Treasury) implementing the Paycheck Protection Program under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Paycheck Protection Program Rules).
  • You, together with any affiliates (if applicable)
    • (1) is an independent contractor, self-employed individual, or sole proprietor with no
      employees;
    • (2) if not a housing cooperative, eligible 501(c)(6) organization, or eligible destination marketing organization, employ no more than the greater of 500 employees or, if applicable, the size standard in number of employees established by SBA in 13 C.F.R. 121.201 for the Applicant’s industry;
    • (3) if a housing cooperative, eligible 501(c)(6) organization, or eligible destination marketing organization, employ no more than 300 employees;
    • (4) if NAICS 72, employ no more than 500 employees per physical location;
    • (5) if a news organization that is majority owned or controlled by a NAICS code 511110 or 5151 business or a nonprofit public broadcasting entity with a trade or business under NAICS code 511110 or 5151, employ no more than 500 employees (or, if applicable, the size standard in number of employees established by SBA in 13 C.F.R. 121.201 for the Applicant’s industry) per location; or
    • (6) is a small business under the applicable revenue-based size standard established by SBA in 13 C.F.R. 121.201 for the Applicant’s industry or under the SBA alternative size standard.
  • You will comply, whenever applicable, with the civil rights and other limitations in the application form.
  • All loan proceeds will be used only for business-related purposes as specified in the loan application and consistent with the Paycheck Protection Program Rules including the prohibition on using loan proceeds for lobbying activities and expenditures. If you are a news organization that became eligible for a loan under Section 317 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, proceeds of the loan will be used to support expenses at the component of the business concern that produces or distributes locally focused or emergency information.
  • You understand that SBA encourages the purchase, to the extent feasible, of American-made equipment and products.
  • You are not engaged in any activity that is illegal under federal, state or local law.
  • Any EIDL loan you received between January 31, 2020 and April 3, 2020 was for a purpose other than paying payroll costs and other allowable uses for loans under the Paycheck Protection Program Rules

 

For applicants who are individuals: you authorize the SBA to request criminal record information about you from criminal justice agencies for the purpose of determining my eligibility for programs authorized by the Small  Business Act, as amended.

 

You must also certify in good faith the following:

  • That you were in operation on February 15, 2020, have not permanently closed, and was either an eligible self-employed individual, independent contractor, or sole proprietorship with no employees, or had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.
  • Current economic uncertainty makes this loan request necessary to support your ongoing operations.
  • The funds will be used for at least one (or more) of the following:
    • retain workers and maintain payroll (as noted elsewhere in this FAQ, paying yourself counts as maintaining payroll)
    • make payments for mortgage interest, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures as specified under the Paycheck Protection Program Rules;
  • You understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold you legally liable, such as for charges of fraud.
  • You understand that loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, covered utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures, and not more than 40% of the forgiven amount may be for non-payroll costs. If required, the Applicant will provide to the Lender and/or SBA documentation verifying the number of full-time equivalent employees on the Applicant’s payroll as well as the dollar amounts of eligible expenses for the covered period following this loan.
  • You have not and will not receive another loan under the Paycheck Protection Program, (this does not include Paycheck Protection Program second draw loans).
  • You have not and will not receive a Shuttered Venue Operator grant from SBA.
  • The President, the Vice President, the head of an Executive department, or a Member of Congress, or the spouse of such person as determined under applicable common law, does not directly or indirectly hold a controlling interest in you or your company, with such terms having the meanings provided in Section 322 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.
  • You are not an issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f).
  • That the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects.
  • You understand that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 U.S.C. 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 U.S.C. 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 U.S.C. 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.
  • You acknowledge that the Lender will confirm the eligible loan amount using required documents submitted.
  • You understand, acknowledge, and agree that the Lender can share any tax information that you have provided with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.