ACT NOW ON THE PAYCHECK PROTECTION PROGRAM
Updated: Mar 22
There's a lot to unpack related to the Paycheck Protection Program (PPP) but for purposes of this first communication, we're going to provide the high-level information that you need to act quickly on behalf of your businesses and employees. In later communications, we'll offer more details and guidance.
Paycheck Protection Plan Application Process & Eligibility
Small businesses, companies with fewer than 500 employees, can apply for Paycheck Protection Program (PPP) loans through existing SBA lenders starting April 3, 2020.
This includes sole proprietorships, independent contractors, self-employed persons, private non-profit organization or 501(c)(19) and veterans organizations affected by coronavirus/COVID-19.
Check with your local banking and/or financial institution to find out if they're an SBA approved lender. We advise that you reach out to institutions with whom you have an existing relationship.
The volume of loan requests is anticipated to be high, so having your loan application ready to submit by April 3, 2020 is recommended.
The U.S. Treasury has provided access to the application at the link below:
Loan Forgiveness
The loan will be fully forgiven if the funds are used for:
payroll costs
interest on mortgages
rent
utilities
At this time, the SBA has guided that at least 75% of the forgiven amount must have been used for payroll.
Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The PPP loan has a maturity of 2 years and an interest rate of .5%.
Accommodation & Food Service Industries
Businesses with the NAICS Code beginning with 72, such as restaurants and hotels, receive further expansions of eligibility for PPP.
We will provide additional information about eligibility expansion for this sector in future communications.
Contact Las Vegas CPA Firms for More Information
FAL is one of the most reputable Las Vegas CPA firms, and our team is available to offer further guidance related to your specific circumstances and the Paycheck Protection Program. You can reach us with questions at info@falcpa.com or contact your Client Service Director or Manager directly.