The U.S Department of Treasury provided this guidance on the Paycheck Protection Program SBA 7(a) loans yesterday.
Starting on April 3, 2020, small businesses and sole proprietorships can apply. On April 10, 2020, independent contractors and self-employed individuals can apply. Attached are the Paycheck Protection Program application, fact sheet, PPP Lender information and IRS 4506T request for tax information.
If you move forward with this process you will most likely need the following for the SBA lender:
- Short narrative on how your company was impacted by COVID-19.
- Documentation supporting your rent, utilities and interest on mortgage obligations at February 15, 2020.
- Last 2 years tax return and most recent financial statement to show you were in business on February 15, 2020.
- Documentation to support your calculation of average payroll for the last 12 months.
- Copies of 4 quarters of the most recently filed payroll tax returns.
- Documentation from your payroll provider of your total payroll for the last 12 months paid to employees.
- Documentation of your employee head count at the application date.
- Calculation of payroll costs as defined in the PPP – Fact Sheet provided, with caps on salary and wages capped at $100,000 for any employee.
- Completed Form 4506-T to verify your tax information with the IRS.
The assessment of companies that have affiliates in determining the number of employees (assuming you are not in the Hospitality and food & Beverage industries) is going to be complicated and we should have some guidance today on how the affiliation rules will be substantiated in the application process. It’s not a problem, if all in, you still have less than 500 employees.
Contact your BKM Sowan Horan service team member or Jim Ramsey at Visoriewww.visorie.com</a) to help lead you through this application and suggest SBA lenders for you to work through if your existing lender is not a designated SBA lender.