PAYCHECK PROTECTION PROGRAM (the SBA 7(a) LOAN)
CHECKLIST AND INFORMATION
While this loan is not currently available as of this morning (3/31/20), this Eblast is being sent to you to assist you in gathering information you will need to provide to your SBA bank lender. We encourage you to find out if your current bank is offering these loans (if you haven’t already). If your bank is not, you will need to contact an SBA lending bank ASAP and establish a relationship now! We have been told that the bankers will be working with their long-time customers first which is reasonable.
What is a PPP Loan?
Please see the U.S. Chamber of Commerce link provided
here
for questions you might have on this loan. This is the best summary we have seen to date.
Potential Documentation Required for PPP Loan
The banks are not yet sure exactly what information they will need. Thus, this list is intended to help you start the process of gathering documentation—the bank may ask you for additional information once the SBA gives them guidance.
2019 IRS Quarterly 940, 941, or 944 payroll tax reports –
CONTACT YOUR PAYROLL REP
Payroll reports for a 12-month period ending with your most recent payroll date. This should show the following: –
CONTACT YOUR PAYROLL REP
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Gross wages for each employee, including the officer(s) if paid W-2 wages
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Paid time off for each employee
+
Vacation pay for each employee
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Family medical leave pay for each employee
+
State and local taxes assessed on the employee’s compensation for each employee
1099s for 2019 independent contractors.
YOU SHOULD HAVE A COPY OF THIS FROM CUAK
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Do not include 1099s for services (NO CLEANING PEOPLE, LABS, ATTORNEYS, ETC.)
2017 & 2018 Corporate Tax Returns (or 2 most recently filed returns).
YOU SHOULD HAVE A COPY OF THIS FROM CUAK
Documentation showing total of all health insurance premiums paid by the Company Owner under a group health care plan –
CONTACT YOUR HEALTH INSURANCE REP
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Include all employees and the company’s owner(s)
Documentation showing the total of all retirement plan funding that was paid by the Company Owner –
CONTACT YOUR PENSION PLAN REP
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Do not include funding that came from the employees out of their paycheck deferrals
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Include employer-paid contributions for all employees, including the company’s owner(s), to 401k plans, SIMPLE IRA plans, and SEP IRA plans.
VERY IMPORTANT TO READ!!!
We are asking that each business set up a separate banking account for the PPP loan proceeds. This money should only be used for the eligible expenses (see the U.S. Chamber of Commerce link above).
We also recommend that you do not accept this loan until you are ready to reopen with your full staff. You will then have 8 weeks to spend the loan money and have it forgiven by the government. Any money left in the SBA bank account you set up can either be returned or rolled into a new loan.
Please stay tuned for more Eblasts as we receive new information that we want to share with you.
As always, be safe, stay sane and please be patient.
COLEMAN, UREDA, ALFORD & KAUCHER, PA
