Paycheck Protection Program (PPP)
Don’t miss out on the Paycheck Protection Program (PPP)!
This valuable stimulus program could easily be overlooked by many businesses so we are wanting to bring it to your attention. The Paycheck Protection Program (“PPP”) authorizes forgivable loans to small business to pay their employees during the COVID-19 crisis. PPP loans can be as large as 250% of a business’s average monthly payroll costs over the last 12 months, however, the maximum loan amount under this program is $10 million. It also specifies allowable uses of the loan to include payroll support, such as employee salaries, paid sick or medical leave, health insurance premiums, and mortgage interest, rent, and utility payments. PPP loans are made by SBA-certified lenders (over 800 financial institutions currently), in all 50 states, through delegated authority from the SBA. In addition, the SBA Administrator and Secretary of Treasury may further authorize additional lenders to join the program, as needed. SBA-certified lenders simply need to verify that a small business was in operation on February 15, 2020, and paid employee salaries and payroll taxes or paid independent contractors, as reported on Form 1099- MISC, for eligibility in the PPP.
Principal amounts on PPP loans, for the first 8-week period from when the PPP Loan is made, may be forgiven, if loan funds are used to cover payroll costs, interest payments on mortgages (not including prepayments or principal), rent and utilities. This means that potentially 100% of the loan could be forgiven if at least 75% of the proceeds are used for payroll related costs! Please find the following link for a fact sheet that explains the program in more detail: https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf
We are here to help! In addition to the PPP loan, the Government has determined that if we become your agent (i.e. authorized representative) and help you with your application and work with the SBA lender, then our fee would be paid out of the lender fees, which are being paid by the government. So our fees would be at NO COST TO YOU. We have done in depth research and have already been working with banks to come up with a process and a spreadsheet to pull together the necessary information to apply for this program. We will work with both you and the SBA Lender to move as quickly as possible.