What is the Paycheck Protection Program?

1. What is the Paycheck Protection Program? As a part of the CARES Act and Consolidated Appropriations Act, 2021, the Paycheck Protection Program provides small business loans with up to 100% forgiveness to help businesses impacted by COVID-19. The objective of this program is to help businesses retain their workforce and assist with operational expenses. These loans are meant to help small businesses cover employee salaries, total payroll support, rent, utilities, and other business related debt-obligations. The Paycheck Protection Program has the following terms: Fixed interest rate of 1.00% 

2. Can elect a 8 or 24 week covered period after origination until March  31, 2021 Payment deferral:  No payments until the SBA pays the lender for the forgiven  portion or No payments for the first 10 months after the covered period if  the borrower fails to apply for forgiveness by the end of that time period 5-year term repayment loans made on or after June 5, 2020  Loan forgiveness of up to 100% of the principal amount  Is your small business eligible for the program? For a first PPP loan: All businesses that were in operation on or before February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 500 or fewer employees and have not received a grant under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act can apply for a first PPP loan. For second PPP loan: All businesses that were in operation on February 15, 2020 – including sole proprietorships, self–employed individuals, and independent contractors – with 300 or fewer employees, have not received a grant under section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, have used or will use the full amount of their first

3. PPP loan and can demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter can apply for a second PPP loan. How is the loan amount determined? For a first draw PPP loan, your loan amount will be 250% (or 2.5 times) your average monthly payroll. For a second draw PPP loan, your loan amount will be 250% (or 2.5 times) your monthly average payroll for most industries. If your business is a restaurant or accommodations, your loan amount will be 350% (or 3.5 times) your monthly average payroll. Your monthly payroll includes wages, tips, group life, disability, vision, and dental insurance, retirement benefits, and taxes. For purposes of calculating "Average Monthly Payroll", most applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee. For seasonal businesses, the applicant must use the average total monthly payments for payroll for any 12 week period selected by the employer between February 15, 2019 and February 15, 2020, excluding costs over $100,000 on an annualized basis for each employee. For new businesses, average monthly payroll may be calculated using the time period from January 1, 2020 to February 15, 2021, excluding costs over $100,000 on an annualized basis for each employee. For Sole Proprietors, Independent Contractor, or Self Employed Individual 2019 Schedule C 

4. Even if 2019 1040 has not been filed, need to complete 2019  Schedule C for the SBA application Note if you also pay W2 wages we will also need:  Q1-Q4 2019 941s (or 944)  Optional (may increase loan amount):  Q1-Q4 2019 State unemployment tax filings  Evidence of retirement contributions  Evidence of health insurance contributions / premiums  Additional documentation for payroll verification may be required or considered acceptable beyond those enumerated in Federal statute to determine eligibility. We require payroll verification to determine eligibility and size of your loan. Your account manager will reach out to obtain this documentation. What information will I need to complete my application? Businesses can apply for this SBA 7(a) loan through a qualified lender for the Paycheck Protection Program, including Spartan Capital -powered by crossriver. Start your Pre-Application and jump in front of the line here and we will alert you as soon as the final application open for processing. Source Link: http://bit.ly/3bFYxeS