On Friday, March 27th, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law. The CARES Act designates $350 billion to help small businesses (including self‐employed and independent contractors, Nonprofits (501(c)(3)), veterans’ organizations (501(c)(19)) and tribal business concerns, with less than 500 employees) keep their employees working.
The Paycheck Protection Program was created under the CARES Act to provide federally guaranteed loans to help small businesses maintain payroll and pay certain other expenses.
The loans offered through this program are up to 100 percent forgivable if the business maintains payroll. Borrowers who already laid off employees will be given credit for loan forgiveness under the program for costs related to rehired employees given the goal of keeping Americans employed during this time.
Business owners will be able to apply for these loans at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the U.S. Department of the Treasury. The SBA has many well-established lending partners including many community banks and credit unions.
While we are still looking for clarification on what information will be required as part of the application process, consider pulling the following information together:
- Documentation for the average monthly payroll and average monthly full-time equivalents, based on the 12 months from April, 2019 through March, 2020. (There are payroll limitations that need to be considered.)
- The average payroll by category: salary, hourly, commissions, vacation, sick leave, group health care (both union and non-union) and retirement contributions (both union and non-union).
- The monthly rent (or mortgage interest) over the last 12 months.
- The amount spent on utilities over the last 12 months.
- The interest on mortgage and any other debt obligations that were incurred before 2/15/2020.
- The tax ID# and full legal name of each entity.
- Ownership information to assist in evaluation of the impact of affiliate entities. For any owners who have more than a 50% ownership interest, obtain a complete listing of other entities in which they also hold more than a 50% ownership interest.
- Documentation on any other COVID-19 relief programs you are applying for (e.g., payroll tax credits, etc.).
Allouez business owners needing more information can contact Trevor Fuller at (920)448-2800 ext. 134, or via email: email@example.com