PAYCHECK PROTECTION PROGRAM APPLICATION DETAILS
This afternoon the application for the CARES ACT, Payroll Protection Program was posted on the Treasury Department’s website. The application requires much less information than previous SBA requirements. The most cumbersome part of the application is the payroll calculation. We are here to help you maximize your loan proceeds and forgiveness.
Beginning April 3, 2020, SBA approved financial institutions will begin accepting applications from small businesses and specific nonprofit organizations with under 500 employees.
Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as soon as possible due to the funding cap.
Download the application from the Treasury Department’s website
You will need the following information about your business or organization:
• TIN number
• Average monthly payroll based on:
•Employee wages (excluding costs over $100,000 on an annualized basis for each employee) for 2019, including paid time off, sick pay, and family medical pay. You can obtain this information from your payroll providers.
• Withholding for state and local taxes on employee compensation.
• 1099’s paid to independent contractors of the core business that provide employee type functions.
• Documentation regarding amounts paid for employee health insurance for the past 2019.
• Documentation regarding the amounts paid for retirement plan funding for the past 2019.
• Number of employees in your business or organization.
• Specific uses for loan money.
• List of owners who hold at least 20% ownership.
After you complete your application, we recommend that you contact your current financial institution. If your financial institution is not an approved SBA lender, we will help you find one. All loans have the same terms regardless of the institution.
We are here to guide you through the entire process, starting with assisting with loan calculations, understanding employment issues, and maximizing your loan proceeds and forgiveness.
If you prefer to do everything by yourself here is a great tool we found online for some of the calculations: HOW TO CALCULATE DEBT FORGIVENESS
The tool is an excel worksheet does three things:
It walks businesses through the calculation of their eligible loan amount.
It calculates the baseline FTE’s required to achieve zero reduction in loan forgiveness.
It allows businesses to predict covered period FTE’s and re-instatement FTE’s in order to forecast loan forgiveness and monthly payments on unforgiven amounts.
If you need to contact us to talk about this please reply to this email or set up a phone call asap.
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