This update is for business owners with payroll expenses and overhead costs applying for the “Paycheck Protection Program” (PPP) (forgivable loans) to help you calculate a loan request amount.
As part of the Coronavirus (COVID-19) tax relief for businesses, the “Paycheck Protection Program” (PPP) has been issued by the federal government. See our PPP Blog Post for the details of this “forgivable loan” program.
How much can you borrow? It depends! Are you a seasonal, non-seasonal, or new business? Were you operating between February 15, 2019 and June 30, 2019? What were your average monthly payroll costs for the last twelve months? Were health insurance premiums paid for employees (they’re included!) Were any employees paid over $100,000 annually? Are you a sole proprietor or contractor (1099) worker?
Help is here! Free Calculators in Excel format to download at AICPA Free PPP Calculators !
These spreadsheets will help you determine eligible loan amounts. (Note they have multiple “sheets” within each “workbook”)
Read this PPP Info Sheet-US Treasury NOW ! This explains all the details and has links you need !
The PPP application process opens today April 3, 2020 (and April 10, 2020 for independent contractors & self-employed persons).
Ask your bank (or other SBA Lender or check out www.sba.gov ) if they are processing these loans and the documentation they require. Not every bank is participating and not every bank will loan to new bank customers!
Start the application now here: Paycheck Protection Program Application
This law authorized $349 billion for this program, but we expect it to run out fast !
Remember, this is different than the SBA Disaster Loan program which is applied for separately here: https://disasterloan.sba.gov/ela/