In an effort to assist you, as soon as possible, we are providing the following information regarding the Federal Paycheck Protection Program. Please be advised this information is based on the facts and guidance available to us as of April 1, 2020.
The Department of Treasury has released the Federal Paycheck Protection Program application. This draft application is also available on the SBA website. https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0.
Please note: the final application will be submitted to your SBA Participating Lender (banks).
The US Treasury and the SBA have not yet finalized the rules of the program for the banks but will be administering these loans. We are recommending the following, in order for you to be in a position to process your application as soon as possible. At this time the application process is expected to start on Friday, April 3, 2020.
- Review the draft application on the SBA website.
- We have attached an excel spreadsheet that should be of assistance with your payroll calculations as required under the act (please contact your payroll provider; who may be able to assist you with some of that information). Please note we used examples and formulas for your convenience.
- Tab 1 is to calculate the estimated amount of the loan that you will request.
- Tab 2 is to calculate the estimated amount of the loan forgiveness based upon the wage reduction calculation.
- Tab 3 is to calculate the estimated amount of the loan forgiveness based upon the employee reduction / to arrive at an employee retention ratio.
- Tab 4 reflects the summary to arrive at an estimated total loan forgiveness amount.
- Some additional documents that may be needed for the application include the following:
- Business Tax Return
- W-2’s for 2019
- Quarterly Payroll Tax Returns for 2019
We will keep this page updated when we receive additional information or further guidance.