Also, note that this is run out of the Treasury Department ... not the SBA ... so, I'm wondering if this simple form will be all that is needed, or will we have to complete the standard SBA Form 1919.
Check with an attorney, but the definition of "payroll costs" in the law includes "payment of any retirement benefit", and the apps I've seen include this as part of the calc for the amount of a loan. The term "payroll costs" also appears as an "Allowable use" of the loan proceeds, and again in the Loan Forgiveness section, and neither seems to redefine it. The assumption here (again - check with an attorney) would be that retirement contributions are an allowable and forgivable use. I've seen no formal regulations or other administrative guidance out yet - so modifications may yet come.
The US Treasury, per their statement, is "assisting" the SBA with this program but SBA is the lead agency.
From the "Top-line overview" at Home.treasury.gov:
"The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information."
Yes, I have replied but my response is being moderated. Sorry about
that. Don't know why.
Here is the PDF from the US CHAMBER of COMMERCE:
I hope you can get it.
Thanks for your input!
I was thinking that 1099 payments shouldn't be included, also. It's just confusing when you read all the differing information out there.
As far as which months are to be included in the 12-month average (2019 vs. 12 prior months from today's date), this is a huge factor for me. I have 3 part-time employees who started at the beginning of the this year. If I can't include their wages in the calculation, then I won't get enough money to cover them for the next 8 weeks, and I'll have to lay them off. I'm really hoping that doesn't wind up being the case.
On the SBA sample form, it says "For purposes of calculating “Average Monthly Payroll”, most Applicants will use the average monthly payroll for 2019..." Not sure what "most" means here...
I have been dealing with a different bank. His laundry list is quite difficult to assemble and fill out:
Information required for PB/LTB PPP Loans:
· PPP Application (attached)
· Borrowing Entities Last 2 years of tax returns (2018 & 2019 or 2017 if 2019 not completed) – full copies
· 2019 financial statement
· Payroll Expense Verification to include:
o All 4 of IRS Form 941 and 940 for YE (with itemization to documents $100K max salary)
o Payroll Summary Report with corresponding bank statement
o If a Payroll Summary Report is not available, Employee stubs (W-2 for 2019 or W-2 C) as of 2/15/20 (or corresponding period) with corresponding bank statement
o Breakdown of payroll benefits (vacation, allowance for dismissal, group health care benefits paid by company, retirement benefits paid by company, etc)
o When applicant uses a 3rd party tax service, 2019 YTD detail of payroll paid should be provided
o All 1099s (if independent contractor)
o All 4 quarterly Form 1040-ES for self-employed individuals
· Short narrative of how business was impacted due to COVID-19, and how this interim 7a loan will assist the company with ongoing operations
· Certificate of Beneficial Owners (attached)
· Articles of Incorporation/Organization on borrowing entity (if entity is owned by other entities, will need those as well) – with EIN #
· By Laws/Operating Agreement on borrowing entity (if entity is owned by other entities, will need those as well) – with EIN #
· All owner’s Driver’s Licenses
· SBA CARES worksheet (attached)
· Employee Habitation Certification (attached)
I am researching
I have posted the link 2 times ... were you able to see it? It says currently being moderated on my screen.
I think the idea is to help every person that is legitimate. Maybe even the ones that aren't, but if we could just get somebody to start taking the applications and giving out the money.
Which link? I haven't seen anything.
Just got this from my banker today 2pm PST:
Yes, Bank Of America is an approved SBA lender.
The information I have at this point is that things are still fluid, they have been changing and so they may change from what I tell you now.
It’s a government thing not the bank.
The most current information is that the loan programs will be rolled out tomorrow via Business online banking (for all the banks).
following -- glad we are all having similar questions. And glad to know I should be watching for an email
Also -- has anyone filed their 941/940 and paid for March?