Yesterday afternoon, the US Treasury released official guidance and assistance for implementation of the Paycheck Protection Program as well as the loan application. UPDATE: SBA PPP Loan Application released April 2, 10 PM.
Small businesses and sole proprietorships affected by the coronavirus pandemic can apply for loans beginning this Friday, April 3. Independent contractors and self-employed individuals can apply starting April 10.
If you are still wondering what the Paycheck Protection Program and how it might impact you or your business, please watch the video message on YouTube that we sent on Monday. You can also view the video on our JMF Facebook page if you prefer.
Revised Needs List
After review of the new guidance, we are now suggesting to all our clients to gather the information below if you plan to apply for this loan and to be ready to apply in short order.
- Payroll summary for 2019
- 2019 compensation to any one employee in excess of $100,000
- Copies of quarterly 941 reports and state unemployment reports for all of 2019
- 2019 W-3 and W-2s
- Payments for group health benefits, including insurance premiums, for 2019
- Document the sum of all retirement plan funding that was paid by the Company Owner (do not include funding that came from the employee’s out of their paycheck deferrals).
- Include all employees, including company owners.
- 401K plans, Simple IRA, SEP IRAs.
It is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs (mortgage interest/rent/utilities). For any unforgiven amount, the terms of the loan will be 2 years at 0.50% with payments deferred for 6 months with interest accruing over this period.
Please reach out to your JMF accountant or email PPP@JMF.com, if you need any assistance.
Other Related CARES Act Blog Posts:
- CARES ACT – Paycheck Protection Program
- CARES ACT – Key Personal Tax Provisions
- CARES ACT – Retirement Plan Changes
- CARES ACT – Unemployment Benefit Changes
- CARES ACT – NOLs or Net Operating Losses
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