The SBA PPP relief loan program continues to evolve. We wanted to provide a quick update and some thoughts as so many of you are preparing to apply. First, the SBA now has a link on their webpage regarding the PPP:
The webpage is not overly detailed yet, but gives some basic information.
As we wait for the full program to be released, including the application, we wanted to share some items you can begin assembling in advance of the application. We would recommend keeping a spreadsheet of these categories and organizing the appropriate back-up. It is expected these items will be needed for the application process.
PAYROLL – Please calculate your itemized Company payroll for 2019 and year-to-date 2020. It appears there may be a limit per employee or officer of $100,000 annually, so pay special attention to the itemized amounts per employee. Include contract labor where you filed a 1099 in lieu of payroll. Be sure to gather the appropriate back up from your payroll provider.
LOAN AND MORTGAGE PAYMENTS – Please itemize all the payments your Company paid on loans and mortgages for business purposes in 2019 and year-to-date 2020. It is unclear at this time if only mortgage payments will qualify and/or if only interest on these payments will qualify. Be prepared either way. For those that have a separate Real Estate holding company that your business occupies, it appears this cost will be captured in the category below, but will be defined by the actual program.
LEASE PAYMENTS – Please itemize all of the rent payments your Company made in 2019 and year-to-date 2020. Copies of all leases may also be required.
UTILITIES AND INSURANCE – Please itemize all of the payments your Company made for utilities and insurance premiums in 2019 and year-to-date 2020.
HEALTHCARE – Please itemize all of the payments your Company made for group healthcare premiums in 2019 and year-to-date 2020.
RETIREMENT – Please itemize all of the payments your Company made for retirement plans in 2019 and year-to-date 2020
This should provide a very good starting point and base to work from once the PPP is released.
Stay safe and we will send future updates as we have them!