Latest information on SBA 7A Payment Protection Program (PPP) Loans
Applications for SBA PPP loans can be received by a Lender on April 3, 2020. Also, the loan rate has been set to 0.5% with a loan term of two years. The PPP loans can be forgiven if used for the proper purposes, with a caveat that no more than 25% of the forgiveness will be credited to non-payroll costs.
Links to the Application and Borrower Information Sheet are attached with some items of specific interest highlighted.
Tips to Expedite the Application and Closing Process
- Locate your organizational documents. These include the Certificate of Organization or Certificate of Incorporation filed with the Secretary of State. If you can’t locate those, go online at ecorp.sos.ga.gov and click on the Business Search button.
- If you are a Corporation (Inc.) you will need your Corporate By-Laws. If you are a Limited Liability Company (LLC), you will need your Operating Agreement. These documents are not generally filed with the Secretary of State. Those documents will determine who can sign for the business and possibly the ownership percentages.
- If you have filed your 2019 taxes, have those documents in hand for your Lender. If you filed an extension, get documentation showing the number of employees you have and payroll costs paid through withholding records.
- Prepare a P&L report from QuickBooks or other accounting software through April 3, 2020, so the amount of the loan can be easily determined. This should show all “payroll costs” in addition to wages and salaries, such as employee benefits, employment taxes, etc. You should also be prepared to itemize costs for rent, mortgage interest, and utilities when a determination of loan forgiveness is made.
- Obtain wiring instructions from the bank that services your Operating Account. Funds will be wired to that account after closing.
- Review the Borrower Information Sheet for other required information that may be specific to your situation.
And of course, if you have any questions, please give us a call.