Disclaimer: as the PPP is handled at the individual SBA Lender level, the items necessary may differ from lender to lender. Additionally, we are not lenders and the information listed here is FYI only. Please contact your business bank to get connected to the appropriate contact.
You are likely receiving a lot of emails and information from various sources regarding the Paycheck Protection Program. The purpose of this post, which may be updated as new information is learned, is to distill the requests and process down to the meat only. So, here goes:
Paycheck Protection Program Tips
Here is the official PPP Application.
You will want to work with your existing SBA-approved bank. We are hearing that due to such high demand, most lenders are prioritizing current customers. If you do not have a good contact, we can provide a list of quality SBA contacts at various banks. Please be aware that their response time will likely be delayed.
Remember: Stay in communication with your lender but avoid inundating them down with unnecessary communication as they are certainly already feeling overwhelmed.
Paycheck Protection Program (PPP) Checklist
Start collecting items that will be requested now. Do not wait for a final list.
2019 and 2020 year-to-date monthly profit and loss statement
2019 and 2020 year-to-date payroll reports
IRS Form 940 (available with payroll processor)
IRS Form 941 (available with payroll processor)
State income, payroll, and unemployment insurance filings
TAX ID/EIN and complete ownership information
For healthcare costs, all health insurance premiums paid by the business owner under a group health plan
Your company retirement plan funding paid for by the company
Additional documents may be needed
Further Details About The Paycheck Protection Program
Purpose: Emergency working capital to keep your business operating during COVID-19
Use of Funds: Payroll costs, rent, interest payments, and utilities; at least 75% of loan funds must be used for payroll costs
Amount: Up to $10MM or 2.5x business’s average monthly payroll, whichever is less Rate: Fixed Interest Rate of 1.00%
Structure: 2-year term; no payments for six months, interest will accrue over this period
Forgiveness: Up to 100% of eligible expenses paid with loan funds during the 8 weeks following closing, subject to compliance with program requirements
Features: No collateral or guarantor support required