Paycheck Protection Program (PPP)
WHAT WE KNOW SO FAR
WHAT YOU CAN DO NOT
The SBA rules continue to evolve and we will provide updates on this site as they become available.
- To qualify, companies and nonprofits must have fewer than 500 total employees, including all affiliates, subsidiaries and companies under common ownership. Certain exceptions apply for small businesses in the food service sector, franchises and SBIC-financed businesses.
- You can apply for both an Economic Injury Disaster Loan (through the SBA) and a Payroll Protection Program Loan, but there may be no duplication in the use of funds.
- The maximum loan amount is 2.5 times your monthly payroll, up to $10 million, with an interest rate of 4%.
- A portion of the loan can be forgiven. Subject to certain restrictions, the portion of the loan eligible for forgiveness can include payments made during the eight-week period following your loan funding (the 8 weeks cannot go beyond June 30, 2020) for the following: payroll and benefits, interest payments on mortgages, rent payments, health insurance, and utility payments.
- These will be unsecured loans that do not require personal guarantees.
- You may be able to defer payments up to 6 months.
WHAT YOU CAN DO NOT
- The SBA has started to define the application process. You can find the current form here.
- Begin to familiarize yourself with the application before we open our online application portal on April 3, 2020.
- Starting April 3, 2020 small businesses and sole proprietorship can apply for and receive loans to cover their payroll and other certain expenses.
- Starting April 10, 2020 independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses.
- Identify and compile records for those expenses that can be covered by the program.
- If you’ve already had to reduce your workforce due to COVID-19, determine if you would like to rehire them. They will be covered.
- Begin collecting the documentation we know you will need:
- 2019 payroll information including:
- IRS Form 941 for all four quarters of your 2019 payroll
- Health insurance premium information for 2019
- State & Local Taxes for 2019
- Retirement Plan contributions made in 2019
- Copies of business property lease and/or mortgage statements
- Current Organizational documents including: 2019 Utility bill statements
- Information required for the SBA Paycheck Protection Program Application Form
- Additionally, you may need:
- General Liability Insurance Certificate
- Business Financial Statements including tax returns
- COVID 19 impact statement
- 8-week forecast of payroll, rent or mortgage interest and utilities
The SBA rules continue to evolve and we will provide updates on this site as they become available.
| paycheck-protection-program-application-3-30-2020-v3.pdf |
| small_business_paycheck_protection_program_.pdf |
| paycheck_protection_program__ppp__information_sheet.pdf |
