Disclaimer: To the best of our knowledge, this information was correct at the time of publication. Given the fluid situation, and with rapidly changing new guidance issued daily, be aware that some or all of this information may no longer apply. Please visit our COVID-19 hub frequently for the latest updates, as we are working diligently to put forth the most relevant helpful guidance as it becomes available.
You must move fast if your “small” business could benefit from a loan of up to $10 million per borrower (Loan)—all or a portion of which may be forgiven tax-free—available now under the “Paycheck Protection Program” of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed into law by President Trump March 27, 2020. Speed is crucial because a Loan must be applied for on or before June 30, 2020. The Loans will be issued on a first-come, first-served basis, and the total amount presently available to fund the Loans is limited to $349 billion. Each Loan is a type of U.S. Small Business Administration (SBA) Act Section 7(a) Loan, which can be obtained through an authorized SBA Act Section 7(a) Lender that “opts in” to the program, and certain other lenders authorized by new SBA regulations (Regulations), including any federally insured depository institution or credit union and any Farm Credit System institution (Lender).
So, what can your business do now?
Reach out to your Lender NOW and begin the application process. Verify your Lender will be participating in the program, and start communicating about Loan application requirements. The final Paycheck Protection Program (PPP) application is live; application submission commenced Friday, April 3 for small businesses and sole proprietors. Applications for independent contractors and self-employed individuals can be submitted starting Friday, April 10. The Regulations require applicants to submit their application, SBA Form 2483 (PPP Application Form) and payroll documentation. Your lender may have additional lender-specific requirements, so ask if you will need to provide additional documentation or files.
Note that while the PPP application form is available on the SBA website in a printable form that must be manually completed, it is preferable to download and use the Treasury Department’s fillable form, which allows you to populate and save your entries as you go.
PYA will be helping our clients with the application preparation process for these Loans. If you or your organization needs assistance or would like additional COVID-19 guidance, visit PYA’s COVID-19 hub, or contact one of our PYA executives below at (800) 270-9629.