SBA Paycheck Protection Program

Applicant/Borrower Considerations and Reminders

General considerations:

  • Please be mindful that you are attesting that your PPP loan request is necessary to support your ongoing operations due to current economic uncertainty.
  • We anticipate the SBA will continue its current process of making loan information public pursuant to its Freedom of Information Act (FOIA) process. This information may include names of the borrowers (and their officers, directors, stockholders or partners) and the amount of the loan.

Paycheck Protection Program - How to Calculate Maximum Loan Amounts – By Business Types:

  • On April 24, 2020, the SBA issued further guidance on how to calculate maximum loan amounts, which can be found here on the U.S. Treasury’s website.

Considerations for real estate businesses:

  • The SBA has confirmed that certain real estate businesses are ineligible for PPP loans, including those primarily engaged in (a) subdividing real property and developing it for resale, (b) owning or purchasing real estate and leasing it for any purpose, and (c) apartment buildings and other residential facilities (other than nursing homes, assisted living facilities and hotels). 
  • In addition, the SBA has confirmed that property management companies that own interests in real estate are also not eligible. 
  • However, if an applicant is in the real estate industry and is primarily engaged in providing services, like property management or brokering leases, without also owning those properties for which those services are provided, they are likely eligible.

Considerations for nonprofit organizations:

  • Eligible nonprofits include 501(c)(3) organizations, 501(c)(19) veterans organizations, and tribal business concerns. Nonprofit organizations that are not tax-exempt under IRC sections 501(c)(3) or 501(c)(19), such as trade associations, advocacy organizations, unions, and social clubs, are not eligible.
Considerations for private schools:

Considerations for venture or private equity backed businesses:

Considerations for businesses that are owned by large companies, have adequate sources of liquidity or are publicly traded:

  • Although there is no requirement for applicants to meet the ordinary SBA requirement (of being unable to obtain credit elsewhere), a business must assess its economic need for a PPP loan and certify in good faith that the PPP loan request is necessary.
  • Current SBA guidance suggests that a business must take into account current business activity and its ability to access other sources of liquidity. As an example, the guidance suggests that it is unlikely that a public company with substantial market share value and access to capital markets will be able to make such certification in good faith.
  • Businesses that do make the certification will have to substantiate it and should be prepared to demonstrate it to the SBA on request.
  • If your business has already applied and repays the loan in full by May 14, 2020 it will be deemed by SBA to have made the required certification in good faith.

Considerations for hedge funds and private equity firms:

Important information regarding your PPP loan:

  • Applicant is responsible for determining that it is an eligible borrower under all applicable PPP rules, including the SBA’s regulations, guidance and standard operating procedures that define ineligible borrowers.  The SBA’s affiliation rules may apply in determining your eligibility.
  • The above information is not a complete list of all ineligible borrowers or a complete summary of the ineligibility rules. Applicant is responsible for reviewing and analyzing the SBA regulations, guidance and operating procedures carefully to assess whether it is eligible for a PPP loan.
  • Knowingly making a false certification in the PPP application is punishable under the law. If applicant has incorrectly made this certification in a pending or accepted loan application, applicant must withdraw its application or cancel its PPP loan, as applicable. Please contact your banker as soon as possible to take any required action.


First Republic is pleased to participate in the Small Business Administration (SBA) Paycheck Protection Program (PPP), a part of the CARES Act.

The CARES Act was enacted to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 emergency. As a component of this Act, the PPP is a loan designed to provide a direct incentive for small businesses and nonprofits to keep their workers on the payroll. On April 16, the SBA announced that the initial funding limit for the PPP was reached. We are proud to have provided thousands of our existing small business and nonprofit clients successful access to the program’s funds prior to that date.



First Republic is providing this information for convenience purposes only. Applicant is responsible for determining eligibility, filling out the application, and for providing true and correct information to First Republic. First Republic is not acting as Applicant’s advisor in determining whether Applicant qualifies for a loan, whether the information Applicant provides is correct, or otherwise. That is Applicant’s responsibility. First Republic and the SBA are relying on Applicant, as the borrower, to determine whether Applicant qualifies and whether the calculations and information provided is accurate and complete. While the headings and information included here are based on the applicable PPP regulations, such headings and information is provided for convenience purposes only. Applicant is solely responsible for its use of this information and ensuring that it complies with the PPP rules and regulations.

Important Information on the Small Business Administration (“SBA”) Paycheck Protection Program
The SBA is making Paycheck Protection Program (“PPP”) loans available on a “first-come first-served” basis. Given the strong expected demand, and uncertainties with the SBA process, documentation requirements, and program requirements, there may be delays in processing your application or the disbursement of funding upon application approval. By accepting this application, First Republic is not committing to lend these funds, but will use reasonable commercial efforts to submit Applicant’s application for acceptance by the SBA for inclusion in the Paycheck Protection Program on Applicant’s behalf, provided we get a completed application and supporting forms and documentation required for submitting such an application, including all required certifications and additional information and documentation as First Republic may require. First Republic cannot guarantee applications to the PPP will be accepted by the SBA, or that there will be adequate government funding to serve such strong expected demand. First Republic also cannot guarantee subsequent forgiveness of any loan amounts, which is subject to the SBA’s requirements, calculations and approval. Applicant is required to submit any and all information, consents, forms and documentation that First Republic requests from Applicant as a condition to First Republic submitting an application, funding a loan to Applicant or later forgiving any portion of the loan. Applicant agrees to accept the final SBA loan note terms which have not yet been published (and First Republic’s interim PPP note terms if not in conflict with applicable program requirements). SBA indicates that their final note terms will be consistent with the PPP rules adopted by the US Treasury Department and SBA Form 147, but the final terms may be different than expected. Applicant agrees to provide on-going reports and information of types and on forms not yet finalized, but are expected to include, among other things, reporting on: Applicant’s payroll and employee headcount numbers as of various relevant dates; and Applicant’s use of the loan proceeds.

If the SBA does not forgive Applicant’s PPP loan in whole or in part, for whatever reason, Applicant remains responsible to repay the principal and interest on the loan or any part thereof that the SBA has not forgiven. First Republic and the SBA rely on the information that Applicant supplies in connection with its application and loan. If that information is not correct, or Applicant do not qualify for the loan or loan forgiveness, Applicant remains liable to First Republic (or any subsequent holder of Applicant’s note) for repayment of the loan.

First Republic is not acting as Applicant’s advisor in determining whether Applicant qualifies for a loan or whether the information Applicant provides or the certifications that Applicant makes are correct. That is Applicant’s responsibility. First Republic and the SBA are relying on Applicant, as the borrower, to determine whether Applicant qualifies and whether the information that Applicant submits and the certification that Applicant makes in support of the PPP loan application are accurate and complete.