> SBA Paycheck Protection Program

SBA Paycheck Protection Program (PPP)

If you’re a business owner who has been impacted by the coronavirus outbreak, you may be able to qualify for financial aid and relief from a variety of sources. Now that the federal government has passed phase three of its stimulus packages to address the economic fallout from the novel coronavirus, known as the CARES Act, more funding options are available to small businesses across the country.


The (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

As the SBA PPP program evolves, rules and guidelines are subject to change.

Business owners, independent contractors and sole proprietors if your local bank isn’t accepting PPP loan applications, we can help-our network of lending partners have began accepting applications.To start the application go to: Paycheck Protection Loan Application

Business owners, if you do not believe you're eligible for the PPP program, you may
be eligible for the Economic Disaster Injury Loan program, go here for information.


Product Overview
Customer Eligibility Overview
Eligible Use of Proceeds
Ineligible Payroll
Eligible Payroll Costs
Calculating Number of Employees

Other Documents to Have Ready:

Proof of Payroll Documents


Non-seasonal businesses:

IRS Form 941 for all 4 quarters of 2019 (you can also provide IRS Form 940 for 2019, but this will slow down the processing of your application)

If any of your employees are paid more than $100,000 (cash compensation) on an annualized basis:  2019 payroll statements by employee with line-item detail on cash compensation (salary, wages, commissions or similar compensation)

Seasonal businesses (primary season is April - June):

IRS Form 941 for Q2 2019

If any of your employees are paid more than $100,000 (cash compensation) on an annualized basis:  2019 payroll statements by employee with line-item detail on cash compensation (salary, wages, commissions or similar compensation)

Businesses not in business for all of 2019:

January - February 2020 payroll statements

If any of your employees are paid more than $100,000 (cash compensation) on an annualized basis, ensure that your January - February 2020 payroll statements are by employee with line-item detail on cash compensation (salary, wages, commissions or similar compensation)

Independent contractors:

2019 1099-MISC
2019 1040 with Schedule C (optional)

Sole proprietorships:

2019 1040 with Schedule C

Businesses who use a third-party payroll provider or Professional Employer Organization (PEO) to process payroll and report payroll taxes:

Schedule R with IRS Form 941

If you cannot get Schedule R with IRS Form 941, include a payroll statement showing wages and payroll taxes from your payroll provider



Proof of Operations

Non-seasonal businesses:

Please provide documentation demonstrating that your business was in operation on February 15, 2020, such as:

Payroll statement for February 2020

Bank statement(s) showing withdrawal for payroll on February 15, 2020

Seasonal businesses (primary season is April - June):

You may instead provide documentation proving that you were operational for an 8-week period between February 15, 2019 and June 30, 2019, such as:

Payroll statements for an 8-week period between February 15, 2019 and June 30, 2019

Bank statement(s) showing withdrawal for payroll for an 8-week period between February 15, 2019 and June 30, 2019

All of the following must be true:

1. Applicant or any owner is not presently suspended, debarred, proposed for debarment, declared ineligible, voluntarily excluded from participation in this transaction by any Federal department or agency, or presently involved in any bankruptcy

2. Applicant, any of its owners, or any business owned or controlled by any of them, has not ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted in the last 7 years and caused a loss to the government

3. Applicant (if an individual) or any individual owning 20% or more of the equity of the Applicant must not be presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or presently incarcerated, on probation or parole

4. Within the last 5 years, for any felony or misdemeanor for a crime against a minor, the Applicant (if an individual) or any owner of the Applicant must not have: 1) been convicted; 2) pleaded guilty; 3) pleaded nolo contendere; 4) been placed on pretrial diversion; or 5) been placed on any form of parole or probation (including probation before judgment)

5. The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.

6. Current economic uncertainty makes the loan necessary to support ongoing operations of the Applicant.

7. The funds will be used to retain workers and maintain payroll or to make mortgage interest, lease, and utility payments.

8. You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.

9. Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities, and not more than 25% of the forgiven amount may be for non-payroll costs.

10. During the period February 15, 2020 - December 31, 2020, the Applicant has not and will not receive another loan under this program.

11. All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.

12. You acknowledge that the lender will confirm the eligible loan amount using the documents you submitted. You also understand, acknowledge, and agree that the lender can share the tax information with the 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.

     Here's the latest on Paycheck Protection Program (PPP) as of 4/24/20

POTUS has signed a bill that includes more money for PPP & EIDL. The bill will provide an immediate $310B infusion for the PPP. And, an additional $10B for EIDL grants and $50B for EIDL program (loan portion).
There’s also a $60 billion carve-out for community-based lenders, as well as mid-sized banks, which can better serve smaller businesses and minority-owned firms. The loan process will start Monday - 4/27. If your business needs a PPP loan do not wait to apply as this money is going to go quickly. If your bank, credit union or a local community bank will allow you to apply now - do that! 
If you do not have a bank where you can apply, go here to apply now.

How to Calculate PPP Loan Amounts: Q & A From Treasury Dept.
 
 
 
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