SBA “PPP” Loan Deadline is June 30th; If You Havent Applied We Can Submit You; Act Now!!
SBA “PPP Deadline is June 30th
How are you? I want to send out a quick reminder that the SBA “PPP” deadline for Submission is June 30th (Next Tuesday).
If you haven’t submitted yet we have a direct submission process through our Online Portal. If you havent submitted now is the time. If you already submitted a paper application with us over a month ago we moved to a Online Portal since then. Our Online Portal has been active for over a month. If you sent me a paper application you should have received at least 2 emails letting you know to go directly to our Online Portal and Submit your application that way.
If you want to submit for the SBA “PPP” program please email me (amorgan.prestige@gmail.com)
Below I Included the original email which has more detailed information on what the SBA “PPP” is, who could apply, and what docs would be needed to apply. Changes are always happening with this program and since his email was sent out about a month ago some things might have changed but overall need to get to submitted before June 30th.
What is the Paycheck Protection Program (PPP)? The SBA Paycheck Protection Program is a program through the U.S. Small Business Administration passed into legislation on March 27, 2020 as part of the CARES Act to help businesses that have been impacted by COVID-19.
Features:
Loan amounts up to 2.5x average covered monthly payroll and selected overhead expenses (not to exceed $10 million)
No fees or prepayment penalties
No business collateral or personal guarantee required
Loan forgiveness for eligible payroll, mortgage interest, rent and utilities during the covered eight-week period after origination
Interest rate of 1%
Loan term of 2 years
Payment will be deferred for 6 months (Interest will accrue during the deferral period)*All terms are subject to change based on the U.S. Small Business Administration guidelines
Eligibility:
Businesses/entities in operation on February 15, 2020;
Small Businesses, 501(c)(3) nonprofits, 501(c)(19) veterans organizations or tribal business concerns that have fewer than 500 employees or otherwise meet the SBA size standard;
Businesses in the accommodation and food service sector that employ 500 or fewer employees per physical location
Sole proprietors or independent contractors and eligible self-employed individuals; and
Affiliation rules are waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Small Business Administration, any small business concern in the accommodations and food services sector, and any company that receives funding through a Small Business Investment Company.
Documents to prepare:
Below is a preliminary list of documents that will likely be needed to process the PPP loan.Completed Application
Articles of Incorporation/Organization of each borrowing entity
By Laws/Operating Agreement of each borrowing entity
All owners Driver’s Licenses
Payroll Expense verification documents for the last year (March 2019-March 2020)IRS Form 940 and 941
If you do not have the IRS Forms:Payroll Summary Report with corresponding bank statement
If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with corresponding bank statement, and, breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.)1099s (if Independent Contractor)Certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States.
Paycheck Protection Program
I am an independent contractor or gig economy worker, am I eligible? Yes. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.
What is the maximum amount I can borrow?The amount any small business is eligible to borrow is 250 percent of their average monthly payroll expenses, up to a total of $10 million. This amount is intended to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations. This 8 week period may be applied to any time frame between February 15, 2020 and June 30, 2020. Seasonal business expenses will be measured using a 12-week period beginning February 15, 2019, or March 1, 2019, whichever the seasonal employer chooses.
How can I use the money such that the loan will be forgiven?The amount of principal that may be forgiven is equal to the sum of expenses for payroll, and existing interest payments on mortgages, rent payments, leases, and utility service agreements. Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sick or medical leave, and group health insurance premiums. If you would like to use the Paycheck Protection Program for other business-related expenses, like inventory, you can, but that portion of the loan will not be forgiven.
When is the loan forgiven?The loan is forgiven at the end of the 8-week period after you take out the loan. Borrowers will work with lenders to verify covered expenses and the proper amount of forgiveness.
What is the covered period of the loan?The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. Borrowers can choose which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020.
How much of my loan will be forgiven?The purpose of the Paycheck Protection Program is to help you retain your employees, at their current base pay. If you keep all of your employees, the entirety of the loan will be forgiven. If you still lay off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If your total payroll expenses on workers making less than $100,000 annually decreases by more than 25 percent, loan forgiveness will be reduced by the same amount. If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30, 2020.
Am I responsible for interest on the forgiven loan amount?No, if the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate according to the loan terms agreed upon by you and the lender.
What are the interest rate and terms for the loan amount that is not forgiven?The terms of the loan not forgiven may differ on a case-by-case basis. However, the maximum terms of the loan feature a 10-year term with interest capped at 4 percent and a 100 percent loan guarantee by the SBA. You will not have to pay any fees on the loan, and collateral requirements and personal guarantees are waived. Loan payments will be deferred for at least six months and up to one year starting at the origination of the loan.
When is the application deadline for the Paycheck Protection Program?Applicants are eligible to apply for the PPP loan until June 30th, 2020.
I took out a bridge loan through my state, am I eligible to apply for the Paycheck Protection Program?Yes, you can take out a state bridge loan and are still be eligible for the PPP loan.
If I have applied for, or received an Economic Injury Disaster Loan (EIDL) related to COVID-19 before the Paycheck Protection Program became available, will I be able to refinance into a PPP loan?Yes. If you received an EIDL loan related to COVID-19 between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.
Prestige Business Financial Services LLC
Website –https://www.prestigebusinessfinancialservices.com
Email –amorgan.prestige@gmail.com
