Current Ohio Guidelines for Opening Businesses
Payroll Protection Act Uses and Forgiveness
Payroll Protection Act Overview
Details of Paycheck Protection Program
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 1%
- 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