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Paycheck Protection Program: What Should You Be Doing Now?

Apr 02, 2020 KSMLA Tags: ,
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The federal government is making a lot of COVID-19 relief programs available. Where do I start, and how quickly do I need to act?

It is a bit overwhelming, and new information is coming out every day. Take a deep breath, because KSM Location Advisors, with the help of Katz, Sapper & Miller, is working around the clock on your behalf, ensuring you have access to information as it becomes available.

While the list of potentially helpful programs is long, the Paycheck Protection Program appears to be the most immediately beneficial. Introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program is a lifeline for small businesses, injecting capital just when they need it most. The program offers nearly $350 billion in federally guaranteed loans, but the hallmark is that the loans can be partially or fully forgivable, provided certain criteria are satisfied.

What Is the Paycheck Protection Program (PPP)?

When Can I Apply?

Who Can Apply?

How Do I Find a Bank That Will Accept My PPP Application?

A great place to start is with your current lending institution. If they are not participating in the program, you can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.

Some lenders are electing to only process those PPP applications for existing clients, but rules vary by institution.

What Do I Need to Do to Apply for the PPP?

You will need to complete the PPP loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020.

What Other Documents Will I Need to Include in My PPP Application?

This information is changing on a daily, if not hourly basis. We will continue to update this list as we receive more guidance but as of today the following will be required:

  1. Payroll costs
    1. Monthly payroll reports from payroll provider, which includes the employee federal withholding broken out, for 2019 and 2020 Q1
    2. Applicant to provide adjustment for individuals earning >$100K, based upon annualized wages
  2. Supporting documentation for payments for group health care benefits (includes coverage, claims paid, TPA costs, etc.) monthly for 2019 and 2020 Q1, examples of supporting documentation could include invoice copies and proof of payment
  3. Retirement funding supporting documentation monthly for 2019 and 2020 Q1, examples of supporting documentation could include invoice copies and proof of payment
  4. State or local tax assessed on the compensation of the employee, for example, state unemployment tax paid by the company monthly for 2019 and 2020 Q1
  5. Summary of 1099 independent contractors for 2019 and 2020 Q1

Need Guidance?

As a part of the Katz, Sapper & Miller network, we have access to more than 350 tax and accounting professionals who can answer your questions and can help you prepare the necessary documentation for the Paycheck Protection Program. Time is of the essence for this application, as loans may be given on a first-come, first-served basis. Contact us today to discuss your situation.


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