SBA's EIDL Loan Application
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