COVID-19 Updates

 We have received a few updates and wanted to pass them on regarding the Paycheck Protection Plan applications:

• Private Bankers will be responsible for gathering the application details and for the loan closing. This is really good for you as we can be directly involved.
• Below includes the most recent list of required information. 

Be application-ready for the Paycheck Protection Loan (PPL) by gathering the following information:

• 2019 and 2020 year-to-date monthly profit and loss statement
• 2019 and 2020 year-to-date payroll reports
• State income, payroll, and unemployment insurance filings
• TAX ID/EIN and complete ownership information
• 1099s for 2019 employees and independent contractors that would otherwise be an employee of your business. Do not include 1099s for services
• For healthcare costs, all health insurance premiums paid by the business owner under a group health plan
• Your company retirement plan funding paid for by the company

You can also view an FAQ published by the U.S. Senate here.

This loan is calculated using 2.5x  the monthly average of your annual payroll 

• EIDL loans may be added to your PPP application and can be used to refinance any portion used specifically for payroll
• All employees and eligible expenses must have existed prior to February 15, 2020
• Companies are eligible to file on April 3, 2020; Sole Proprietors and Contractors are eligible to file on April 10, 2020

Loan Forgiveness:

• Qualifying eligible expenses which can be submitted for forgiveness: 
• Payroll
• Healthcare & Insurance Premiums
• Mortgage Interest Payments
• Rent Payments 
• Utility Payments
• Interest Payments on debt incurred prior to February 15, 2020

Loan Limitations:

• You must have fewer than 500 employees
• Any amount of salaries over $100K are ineligible for your loan calculation
• Only 25% of your qualifying expenses can be non-payroll related
• Loan Forgiveness: 75% Payroll Expenses - 25% Other Qualifying Expenses

Required Information

• Prior year payroll supporting your loan calculation
• Sole Proprietors and Contractors must be able to submit either Form 1099 or income and expenses
• Documentation verifying number of full-time employees and payroll costs for the eight week period following your loan
• Documentation of payments of all other submitted qualifying expenses for the eight week period following your loan

View this article on LinkedIn