Payroll Protection Program (PPA)

·         Important Dates: Small businesses & Sole Proprietorships can apply starting April 3^rd; Independent contractors and self-employed individuals can apply starting April 10^th

·         Items needed: Verification the borrower was in operation February 15, 2020; Verify number of employees that were paid salaries and state and local payroll taxes; Verify dollar amount of average monthly payroll costs; (The information utilized for the IRS on salaried employees) BSA requirements must be followed

·         Payroll costs are capped at $100,000

·         Within the application, there are statements that anybody that owns 20% or more of the company must attest and certify

·         Terms of note:

• Interest rate is 0.5 percent
• First payment due date is deferred for six months but interest will accrue during this period.
• Loan maturity is two years

·         The loan amounts are forgivable as long as (this list may not be all inclusive of the forgivable amount and will be determined at a later date by the bank and SBA):

§  The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made and

§  Employee and compensation levels are maintained.

·         Not more than 25% of the forgiven amount may be for non-payroll costs

For additional details here is a link.  https://home.treasury.gov/cares