Paycheck Protection Loan Applications are Available
This afternoon the application for the CARES ACT, Payroll Protection Program was posted on the Treasury Department’s website. The application requires much less information than previous SBA requirements. The most cumbersome part of the application is the payroll calculation. We are here to help you maximize your loan proceeds and forgiveness.
Beginning April 3, 2020, SBA approved financial institutions will begin accepting applications from small businesses and specific nonprofit organizations with under 500 employees. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as soon as possible due to the funding cap.
Download the application from the Treasury Department’s website
You will need the following information about your business or organization:
- TIN number
- Average monthly payroll based on:
- Employee wages (excluding costs over $100,000 on an annualized basis for each employee) for 2019, including paid time off, sick pay, and family medical pay. You can obtain this information from your payroll providers.
- Withholding for state and local taxes on employee compensation.
- Documentation regarding amounts paid for employee health insurance for 2019.
- Documentation regarding the amounts paid for retirement plan funding for 2019.
- Number of employees in your business or organization.
- Specific uses for loan money.
- List of owners who hold at least 20% ownership.
After you complete your application, we recommend that you contact your current financial institution. If your financial institution is not an approved SBA lender, we will help you find one. All loans have the same terms regardless of the institution.
We are here to guide you through the entire process, starting with assisting with loan calculations, helping you establish relationships with approved lending institutions, understanding employment issues, and maximizing your loan proceeds and forgiveness.
Contact your Whittlesey Advisor with questions and assistance applying for the program. We encourage you to download your application today. Do not delay!
Disclaimer: Our content, comments, and answers to questions should not be construed as specific advice for your particular situation. The statutes and rules related to the SBA lending provisions and other programs are complex and you should consult with your financial and tax advisors for guidance regarding the application of the law to your particular facts and circumstances.