There is a massive amount of information from a variety of sources circulating minute-by-minute. We know time is valuable beyond measure and want to give you accurate information and best advice as you are seeking your PPP loan through your lender. We will be here for you every step of the way to provide the necessary guidance to help you achieve your loan.
We have spoken to many lenders over the past 24 hours and this is what we know:
1) It is imperative that you contact your current lender or banker. If you do not have one, please consult with the bank that handles your business operating and/or payroll accounts.
2) The procedural policies and guidelines are expected to come out today to the banks from the SBA. The banks will begin accepting applications for small businesses and sole proprietorships on Friday, April 3, 2020. The following week, on April 10, 2020, the banks will being accepting applications for independent contractors and self-employed individuals.
3) Be prepared to open a separate bank account at the lending institution that funds your loan. This will be instrumental in the record-keeping aspect of the loan funding and expenditures.
4) If you have an outside payroll company, we encourage you to contact them to obtain your AVERAGE MONTHLY PAYROLL.
5) Understand what this loan covers – Payroll costs, including benefits, Interest on mortgages obtained prior to February 15, 2020, Rent, under lease agreements in force before February 15, 2020, and Utilities, for which service began before February 15, 2020. Note: Payroll is capped at $100,000 on an annualized basis for each employee.
6) We have learned there will be a fixed interest rate on the loan. The terms of the loan are still being determined at this time. It is our understanding the interest will apply to the portion of the loan that is not forgiven.
7) The loan amounts will be forgiven as long as:
• The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility cost over the 8 week period after the loan is made;
• Employee and compensation levels are maintained.
For easy access, we have posted the following items on our website under our Covid-19 Resource Page:
• Overview of the Paycheck Protection Program (PPP)
• Borrower Fact Sheet
• Lender Fact Sheet
• Paycheck Protection Program Application – SBA Form 2483 (03/20)
Please note the above items are linked directly to the SBA.gov and US Treasury websites are subject to change without warning.
To streamline the process for your document request, we anticipate you may need certain financial statements and/or tax returns for your business(es), and/or individual tax returns. Please submit your request to: msmith@frscpa.com. Melissa Smith, our Client Relationship Manager will acknowledge your email and our team will work with you to get you the requested information in a timely manner.
Once again, we understand the importance and urgency of the application and are here for assistance.
