Payroll Protection Program Details Released

The details of the Paycheck Protection Program were released 3/31/2020. Here they are in brief:
  • Program will provide small businesses with funds to pay up to 8 weeks of payroll costs, including benefits.
  • Funds may also be used to pay interest on mortgages, rent, and utilities.
  • Full forgiveness is available based on the employer maintaining or quickly rehiring employee and maintaining salary levels
  • Forgiveness will be reduced if full-time head count declines or if salaries and wages decrease
  • Small businesses and sole proprietors’ application period begins April 3
  • Independent contractors and self-employed individuals’ application period begins April 10
  • Application will be submitted through approved SBA Lenders
  • Interest rate on these loans will be 0.5%
  • Loan maturity is 2 years
If you plan to apply, you should gather the following information to submit with the loan package:
  • Employee wages and salary information for the past 12 months (including owner’s)
    • Include paid time off, vacation, sick pay, family medical pay etc.
  • Withholding for state and local taxes on employee compensation
  • 1099s paid to independent contractors
  • Documentation showing how much the employer paid in employee group health insurance premiums for the past 12 months
  • Documentation showing the amount of retirement plan funding the employer made for employees over the past 12 months
    • Includes profit sharing 401(k) plans, cash balance plans, SIMPLE and SEP IRAs

INFORMATION SHEET

APPLICATION FORM

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