Paycheck Protection Program
The most significant items in the Payroll Protection Program portion of the CARES act signed into law on March 27, 2020 include
Guaranteeing 100% of the loan through December 31, 2020
Eligibility includes small businesses, non-profits, veteran’s organizations and Tribal business concerns with 500 employees or less, or that meet the applicable size standard for the industry the business is in as provided by the SBA. Affiliation rules apply for non-profits. The employee count includes employees at all locations in total except for some businesses in the accommodations, food service, and franchise industries. Sole-proprietors, independent contractors, and other self-employed individuals are also eligible.
The loan period is between February 15, 2020 and June 30, 2020
Maximum loan amount is ten million but there are specified calculations and rules to determine the maximum for a particular business.
Loan proceeds can be used for payroll support including salaries, paid sick or medical leave, payroll related insurance premiums, mortgage, rent and utility payments.
Loan forgiveness is available for the amount spent during the eight week period after the origination of the loan for the actual costs of payroll, interest payments on a mortgage incurred before February 15, 2020, payment of rent on a lease in force prior to February 15, 2020 and payment for utilities for services that began before February 15, 2020. The loan forgiveness amount may be lowered if there is a reduction in employees compared to the prior year or there is a decrease in the amount paid to employees.
Unfortunately, due to overwhelming demand, we can no longer assist companies or individuals who are no already clients of our firm. If you are not a firm client then please contact your bank or search for a SBA approved lender to assist you in preparing your application.