The Small Business Administration (SBA) with support from the Department of the Treasury has released the instructions and application form for the Paycheck Protection Program (PPP) loans. These loans are available to businesses with fewer than 500 employees and who were in business before February 15, 2020. Completed applications may be submitted to your bank beginning on Friday April 3rd.  Below are links to information about the loans and the application itself.

North Star Leasing strongly encourages all customers to apply as soon as possible given that there is a funding cap. This program requires no credit check, no personal guarantee, and no collateral. These are unsecured loans that, if properly handled, will be forgiven after a few months.

Information for borrowers

The Greater Burlington Industrial Corp. (GBIC ) shared this very informative overview video which breaks down the details of the Paycheck Protection Program into very simple terms.  Click this link to watch:

Supporting documents:

How to apply

You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.

Fill out the Paycheck Protection Program application and submit it to your bank. We strongly suggest you use your existing banking relationship.

While a definitive list of required financial documents has not been released, it is recommended that you obtain copies of the following documents to support your application.

  • Most Recent IRS 941, Employer’s Quarterly Federal Income Tax Return
  • Breakdown of 1/1/2019 to 2/1/2020 payroll expenses to help determine loan sizing
  • Complete 2019 financials – Profit and Loss Statements and Balance Sheets

How long will this program last

Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.


Comparison of Relief Programs

Overview PPP (Paycheck Protection Program) EIDL (SBA Economic Injury Disaster Loan) EIDL Emergency Grants
Max Loan Amount 2.5x monthly payroll costs capped at $100k per employee, maximum of $10MM per borrower $2MM Grant up to $10,000
Eligible Borrowers Business with fewer than 500 employees Business that meet the SBA size standard 500 or few employees , Sole Proprietorships, Cooperative of 500 or few employees, ESOP (500 or fewer employees), Tribal small business concern (500 or fewer employees)
Use of Proceeds Payroll Interest on mortgage payments (principal or prepayments excluded) Rent Utilities Interest on any other debt incurred prior to 2/15/2020 Payroll Rent Utilities Interest on debt incurred Accounts payable Some bills that could have been paid had the disaster not occurred Any allowable purpose for a loan made under Section 7(b)(2): Provide sick leave to employees unable to work due to direct effect of COVID-19 Maintain payroll to retain employees during business disruptions or substantial slowdowns Meet increased costs to obtain materials unavailable from applicant’s original source due to interrupted supply chains Make rent or mortgage payments Repay obligations that cannot be met due to revenue loss
Collateral Waived Personal guarantee required Will take collateral Waived
Affiliation Applicable Applicable Waived
Credit Elsewhere Waived Waived Waived
Forgivable Yes, up to 100%. Forgiveness of indebtedness of an amount equal to the sum of the qualified costs incurred and payments made during the covered period (8-week period following the loan origination. Forgiven portion may be reduced by a reduction in retained employees or reduction in pay of retained employees) NO Yes, Grant
Interest 4% for non-forgiven portion 3.75% N/A
Term 10 years for non-forgiven portion Up tp 30 years N/A
Application Complete PDF Application and send to your bank. Apply Online Apply Online


If you have any questions, please contact us.