SBA Paycheck Protection Program FAQ

Frequently Asked Questions

These questions and answers are being provided as a convenience. The answers are based on our interpretation of the SBA Final Rule. This information does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. The information below may not constitute the most up-to-date legal or other information and Enterprise Bank & Trust may update this information without notice. You should contact your attorney to obtain advice with respect to any particular legal matter below. Enterprise Bank & Trust gives no warranty and accepts no responsibility or liability for the accuracy or the completeness of the information and materials contained below. All liability with respect to any action taken or not taken based on the content below is hereby expressly disclaimed.


What is the Paycheck Protection Program (PPP)?

The PPP is a federal loan program that is designed to help small- and medium-sized businesses impacted by the coronavirus (COVID-19) to retain their workforce. One of this program’s significant features is you can apply for loan forgiveness after receiving the funds as long as the funds are used to fund payroll and other specific uses during the covered period. Forgiveness can be up to 100% of the loan and accrued interest. 

Am I eligible for this loan?

Small- and medium-sized businesses and nonprofit organizations that were in operation on or before February 15, 2020 with 500 or fewer full- or part-time employees (independent contractors can apply on their own and do not count toward the employee count) are generally eligible to apply for this loan. Please visit the Treasury PPP Information sheet for more information about eligibility.

When and how do I apply for this loan?

Enterprise will take PPP applications until the end of the day on July 27, 2020 to allow time for processing and SBA approval by the deadline of August 8, 2020. 

I submitted my application by July 27. When will I get my PPP loan?

Receipt of an application by July 27 does not guarantee that a PPP loan will be processed by us and approved by the SBA by the August 8 deadline. There are many factors that impact the processing of a PPP application, including the completeness of the application and supporting documentation. We will send you loan documentation if the application is processed by the SBA prior to August 8, 2020.

If I do not have an Enterprise checking or savings account, will I need to open one if I am approved for an SBA PPP loan?

Yes, an Enterprise checking or savings account will be required to close and fund the loan.

Yes, an Enterprise checking or savings account will be required to close and fund the loan.

You will hear from Enterprise as soon as the SBA accepts your loan application.

What can I use my funds for?

The permitted use of proceeds are:

  1. Payroll costs
  2. Rent
  3. Utilities
  4. Interest on mortgages, and
  5. Interest on other debt obligations on debt incurred before February 15, 2020.

To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to non-payroll costs. Forgiveness will be reduced proportionally if payroll does not meet the 60% threshold.

How long do I have to spend the loan proceeds?

The SBA recently extended the “loan forgiveness covered period” to a 24-week period beginning on the date your PPP loan was disbursed or December 31, 2020, whichever is earlier. If your PPP loan was made before June 5, 2020, you may elect to have your loan forgiveness covered period be the eight-week period beginning on the date your PPP loan was disbursed. If you elect to use an eight-week covered period, you may seek forgiveness for payroll costs for the eight weeks beginning on either:

  1. The date of disbursement of your PPP loan proceeds; or
  2. The first day of the first payroll cycle after disbursement of your PPP loan proceeds (the “alternative payroll covered period”).
What is the maximum amount an owner-employee or single employee can pay themselves during the covered period?

The SBA recently provided guidance for the maximum amounts that can be used for payroll costs for a single employee and income replacement for an owner-employee in obtaining forgiveness.

  • The eight-week period is calculation is 8 ÷ 52 × 2019 net profit, up to a maximum of $15,385.
  • For the 24-week period, the forgiveness calculation is limited to 2.5 months’ worth (2.5 ÷ 12) of 2019 net profit, up to $20,833.
Are there any other products available as part of the relief package that could positively impact (forgiveness, cover payments, etc.) my business loan with Enterprise?

Yes. For example, if you have an existing SBA loan with the bank, there is payment relief available for that specific SBA loan during the remainder of 2020. You can find additional information on our COVID-19 Customer Information page or discuss options with your Relationship or Portfolio Manager.

When will I receive funding if I submitted an application?

Enterprise is working to disburse approved loans as fast as possible. Your loan will be funded within 10 calendar days from SBA approval, as long as we receive signed and completed paperwork from you in a timely manner. If we do not receive paperwork back in a timely manner, the SBA requires your loan application to be canceled if it is not funded within 20 calendar days.

I received my PPP funds and want to change the amount. What should I do?

No changes are permitted after your PPP loan has been funded.

I have received the loan document. Where is information about loan forgiveness?

You can reference Section 1106 of the CARES Act (the “Act”) regarding forgiveness of the loan, which will be determined at a later date in accordance with the Act. Your Note refers to the Act in Section 3, Payment Terms, and makes the Note subject to the Act. 

What changes did the  Paycheck Protection Program Flexibility Act of 2020 make to the Program?

This Act provided flexibility for the following:

  • Created a new exemption for borrowers to avoid a reduction in loan forgiveness amount when they have a reduction in full-time equivalent employees.
  • The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest.
  • To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to nonpayroll costs. Forgiveness will be reduced proportionally if payroll does not meet the 60% threshold.
Where can I apply for forgiveness?

We are waiting for the final guidance from the SBA on how to submit Loan Forgiveness Applications. Until that guidance is received and evaluated, we will not accept loan forgiveness applications. Please do not submit the Loan Forgiveness Application at this time. Please visit our SBA PPP Loan Forgiveness page for more information.

Can I repay my PPP loan?  

Yes, Borrowers may repay their PPP loan at any time without a prepayment penalty. You will be charged accrued interest on the PPP loan for any time it was outstanding. For repayments after May 18, 2020, the certifications you made on your application remain subject to SBA review.

Does Enterprise pay agents or agent fees?

Enterprise may pay agent fees if the agency is disclosed at the time the loan application is submitted and the parties reach a contractual agreement for fees that are consistent with SBA requirements.

Who can help answer my question if it’s not on the website?

Due to the overwhelming number of questions, we are asking borrowers to discuss questions with their legal counsel, financial advisor or accountant for assistance. Ultimately, the accuracy of the calculation is the responsibility of the applicant. For more information on the program, you can review the SBA website at SBA.gov.