Please see attached information and message below from the Seward County Chamber. We believe many, many of our small business clients (fewer than 500 employees) will be eligible for the Paycheck Protection Program.
Takeaways from our early research on this program:
1. CONTACT YOUR LENDER to ensure they are SBA loan approved and to get your name on their list.
a. SBA Loans are a week or two away before the application process begins. But you will want to be ready to “get in line” immediately when the application period opens.
2. Have documents ready
a. 2019 business tax returns (email requests to email@example.com)
b. 2019 profit and loss statements
c. 2019 payroll records (including annual summary of payroll taxes, retirement benefits, and health insurance coverage)
3. Your GBE advisor will be available for questions at our normal rates.
4. We’ll provide more information as we become aware.
- Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses.
- If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.
- Businesses – including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act – with 500 or fewer employees may apply.
- Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
- Businesses may apply for both PPP and the SBA Economic Injury Disaster Loan (EIDL) assistance, as long as funds from both loans are used for separate expenses.
**Note that the CARES Act amended the EIDL program to allow business to receive a $10,000 loan advance after applying. If denied EIDL assistance, that advance will be turned into a “grant” which does not have to be paid back. EIDL loans are separate from PPP loans.
- Application to be submitted through SBA approved lenders – more information forthcoming.
More Information on Paycheck Protection Program (PPP):
Application for Economic Injury Disaster Loan (EIDL):
To help small businesses prepare to file for PPP loans, the U.S. Chamber of Commerce has created the attached four-page COVID-19 Emergency Loans Small Business Guide and Checklist. Please look at it if you are considering applying. I’ve also attached a three-page PPP FAQ Document, which was prepared by the U.S. Senate Committee on Small Business & Entrepreneurship; as well as a simplified one-page Paycheck Protection Program Overview.
If you have any questions, please do not hesitate to reach out. We also encourage you to reach out to your lending institution as they are more familiar with SBA loan programs. Remember, financial institutions are important partners in times of uncertainty!