April 4, 2020
The federal stimulus for small businesses, known as the Paycheck Protection Program, went live yesterday. But not much happened.
Most banks are still figuring out how to roll out these loans as the guidance from the federal government came in late Thursday, April 2, and still lacks clarity. Many are collecting information from interested customers with plans to contact them directly as soon as they are ready.
Here is what we recommend:
- If you haven't already contacted your banker, do so now. Many banks will take a "first in, first out" approach to approving applications so make sure that you inform your banker of your interest and complete any forms they request.
- If you haven't done so already, calculate your average monthly payroll for 2019. Make sure to include the cost of health insurance, retirement plans, and any employer-paid state and local taxes, but also cap any employee compensation at $100,000.
- Make copies of the Drivers License of any owner who owns 20% or more of your company as they will likely be required with your application.
- Review SBA Form 2483 and complete the sections you are able. You will need to fill this out in order to apply.
You can find more details on the payroll calculation and requirements for loan forgiveness by reading the Borrower Fact Sheet prepared by the U.S. Treasury.
As always, give one of us a call if you need support.
Disclaimer: The information listed above is based on our analysis and discussions with numerous banks as of the time of this writing and is subject to change upon the release of new information. We will update this page if any material changes become known.