SBA Paycheck Protection Program Updates

Extended until May 31, 2021

 

 

SBA Paycheck Protection Program

  • Loans are available to small businesses that employ 500 employees or fewer, or if your business is in an industry that has an employee-based size standard through SBA that is higher than 500 employees. Loans are available to entities such as sole proprietors, independent contractors, gig economy workers, tribal businesses, 501(c)(3) non-profits, including religious organizations and self-employed individuals. Loans are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profits.
  • Applicants need to show they have suffered working capital losses due to the coronavirus disaster. The SBA offers working capital loans for payroll, accounts payable, and other bills that could have been paid had the disaster not occurred; could be used to pay fixed debts.
  • The loans are designed to assist with payroll that could have been paid had the disaster not occurred.95% of the loans previously issued have been for $500,000 or less but can go up to $2 million. The SBA will determine the loan amount.
  • 95% of the loans previously issued have been for $500,000 or less but can go up to $2 million. The SBA will determine the loan amount. 
  • Required documents: the signed and initialed Paycheck Protection Program Application Form, the signed Payroll Protection Supplemental Form, Spreadsheet of Payroll Cost Calculation to assist the borrower in the calculation of the monthly payroll cost and Documentation showing any funds received from an SBA Economic Injury Loan since 1/31/20. Additional information needed will be Monthly payroll reports by employee from 1/1/19 through 12/31/19 including: Gross salary/wages, Vacation/PTO/Sick Leave and Family Medical Leave Pay, Forms 940, 941, or 944 for State and Local Taxes, Documentation for Retirement Contribution; Documentation for Health Insurance Premiums; and Separation or Dismissal Payments.
  • Send all required documentation to sba@felicianabank.com

       Paycheck Protection Program Borrower Application Form (Revised March 18, 2021)

       Paycheck Protection Program Borrower Application Form for Schedule C Filers Using Gross Income (Revised March 18, 2021)

       Paycheck Protection Program Second Draw Borrower Application Form (Revised March 18, 2021)

 

SBA PPP Forgiveness Application Information

The U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

PPP Forgiveness Application 3508EZ (Revised 01.19.2021)

Paycheck Protection Program PPP Loan Forgiveness Application Form 3508S (Revised 01.19.2021) Used Only If The Borrower Received A PPP Loan of $150,000 or Less

PPP Loan Forgiveness 3508 Application (Revised 01.19.2021)

See all PPP tools here, https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses.

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