UPDATED: June 17, 2020 - 5:15 pm
Updated Guide to the Paycheck protection program (June 17, 2020)
Updated Guide to PPP Loan Forgiveness. This guide reflects recent substantive changes made by Congress and the administration to the PPP program to provide borrowers with more flexibility. These changes include:
The updated Guide to PPP Forgiveness reflects all of these changes, as well as others made in recent guidance issued by the Department of the Treasury. It is designed to help you more easily understand the forgiveness application process. However, note that while this guide reflects all of the most recent changes, it is possible that further changes could be made.
Click Here To Download Guide For The PPP Forgiveness
- Extending the time to spend PPP funds from 8 weeks to 24 weeks;
- Lowering the amount that must be spent on payroll from 75% to 60%;
- Extending the deadline to restore FTEs and payroll from June 30, 2020 to Dec. 31, 2020; and
- Setting the repayment term for loans made after June 4, 2020 at five years.
The updated Guide to PPP Forgiveness reflects all of these changes, as well as others made in recent guidance issued by the Department of the Treasury. It is designed to help you more easily understand the forgiveness application process. However, note that while this guide reflects all of the most recent changes, it is possible that further changes could be made.
Click Here To Download Guide For The PPP Forgiveness
Paycheck Protection Program & Economic Injury Disaster Loans Update (May 5, 2020)
The Small Business Administration (SBA) is still accepting applications for the Paycheck Protection Program (PPP) and has new eligibility for the Economic Injury Disaster Loans (EIDL) Program.
PPP
The Paycheck Protection Program is for small businesses impacted by COVID-19 and funding can be used for payroll, rent, mortgage interest, or utilities. Learn more and find a participating lender here:
www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
EIDL
The Economic Injury Disaster Loans Program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. The SBA recently announced new eligibility and will only be accepting applications on a limited basis to provide relief to U.S. agricultural businesses.
Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change (April 24), SBA will process these applications without the need for re-applying.
www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
PPP
The Paycheck Protection Program is for small businesses impacted by COVID-19 and funding can be used for payroll, rent, mortgage interest, or utilities. Learn more and find a participating lender here:
www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
EIDL
The Economic Injury Disaster Loans Program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. The SBA recently announced new eligibility and will only be accepting applications on a limited basis to provide relief to U.S. agricultural businesses.
Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change (April 24), SBA will process these applications without the need for re-applying.
www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
overview - Paycheck Protection program & health care enhancement act
On April 24, 2020, Bill H.R. 266, the Paycheck Protection Program & Health Care Enhancement Act was signed into law.
The bill provides $484 billion in additional funding to replenish and supplement key programs under the CARES Act, including the Paycheck Protection Program (PPP), small business disaster loans and grants, hospitals and health care providers and testing.
The small business loan programs authorized under the CARES Act had been quickly depleted after only two weeks of operation. More details are below.
The bill provides $484 billion in additional funding to replenish and supplement key programs under the CARES Act, including the Paycheck Protection Program (PPP), small business disaster loans and grants, hospitals and health care providers and testing.
The small business loan programs authorized under the CARES Act had been quickly depleted after only two weeks of operation. More details are below.
Paycheck Protection Program (PPP): The bill appropriates an additional $321 billion in funding, with $60 billion set aside for small, midsize and community lenders (including minority lenders).
Economic Injury Disaster Loans (EDIL): The bill appropriates an additional $50 billion for the Disaster Loans Program and an additional $10 billion for Emergency Economic Injury Disaster Loan (EIDL) Grants.
Economic Injury Disaster Loans (EDIL): The bill appropriates an additional $50 billion for the Disaster Loans Program and an additional $10 billion for Emergency Economic Injury Disaster Loan (EIDL) Grants.
overview - CARES ACT
On March 27, 2020, Bill H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by the House and signed into law.
The $2 trillion dollar bill includes $367 billion in forgivable loans to small businesses; $150 billion for hospitals and health supplies; $500 billion for state and local governments and specific industries particularly impacted; extended unemployment benefits; direct payments and tax relief for individuals, as well as tax relief for businesses and assistance for financial markets.
The $2 trillion dollar bill includes $367 billion in forgivable loans to small businesses; $150 billion for hospitals and health supplies; $500 billion for state and local governments and specific industries particularly impacted; extended unemployment benefits; direct payments and tax relief for individuals, as well as tax relief for businesses and assistance for financial markets.
Two main funding options are outlined in the CARES Act, however additional programs are available to help support businesses.
1) Economic Injury Disaster Loan (EIDL) |
Expanded - $10 Billion
|
2) Paycheck Protection Program (PPP) |
|
With the passage of the CARES Act, the existing SBA Economic Injury Disaster Loans (EIDLs) program is modified to meet the unique needs of business owners during the pandemic. In addition, there is a NEW loan program to help small businesses – Paycheck Protection Program (more below).
Economic Injury Disaster Loan
The Paycheck Protection Program & Health Care Enhancement Act, further expanded the Small Business Administration’s long-standing Economic Injury Disaster Loan Program (EIDL), which was also earlier supplemented with the CARES Act. The EIDL program was created to assist businesses, renters, and homeowners located in regions affected by declared disasters. This program also includes $10,000 grants for eligible applicants.
U.S. Chamber created a helpful guide to navigate the process: uschamber.com/eidl
Learn more and apply at: www.sba.gov/funding-programs/loans/coronavirus-relief-options
Payroll Protection Porogram
The Paycheck Protection Program established by the CARES Act, and further expanded by the Paycheck Protection Program & Health Care Enhancement Act, is implemented by the Small Business Administration with support from the Department of the Treasury. This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
The U.S. Chamber’s Coronavirus Small Business Emergency Loan Guide, outlines the steps small businesses need to take to access much-needed Payroll Protection Program (PPP) funds.
Recently, the Treasury Department issued more details on this paycheck protection program and a loan application available for download at home.
Employee Retention Tax Credit Guide
The CARES Act created a new employee retention tax credit for employers who are closed, partially closed, or experiencing significant revenue losses as a result of the coronavirus.
The guide is available at: uschamber.com/ertc
The Paycheck Protection Program & Health Care Enhancement Act, further expanded the Small Business Administration’s long-standing Economic Injury Disaster Loan Program (EIDL), which was also earlier supplemented with the CARES Act. The EIDL program was created to assist businesses, renters, and homeowners located in regions affected by declared disasters. This program also includes $10,000 grants for eligible applicants.
U.S. Chamber created a helpful guide to navigate the process: uschamber.com/eidl
Learn more and apply at: www.sba.gov/funding-programs/loans/coronavirus-relief-options
Payroll Protection Porogram
The Paycheck Protection Program established by the CARES Act, and further expanded by the Paycheck Protection Program & Health Care Enhancement Act, is implemented by the Small Business Administration with support from the Department of the Treasury. This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
The U.S. Chamber’s Coronavirus Small Business Emergency Loan Guide, outlines the steps small businesses need to take to access much-needed Payroll Protection Program (PPP) funds.
Recently, the Treasury Department issued more details on this paycheck protection program and a loan application available for download at home.
Employee Retention Tax Credit Guide
The CARES Act created a new employee retention tax credit for employers who are closed, partially closed, or experiencing significant revenue losses as a result of the coronavirus.
The guide is available at: uschamber.com/ertc
Small Business Administration
www.sba.gov/funding-programs/loans/coronavirus-relief-options
Department of the Treasury
home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
U.S. Chamber of Commerce
www.uschamber.com/coronavirus
Q&A with Inc. and the U.S. Chamber
https://www.inc.com/stimulus-2020-qa?utm_source=incthismorning
www.sba.gov/funding-programs/loans/coronavirus-relief-options
Department of the Treasury
home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
U.S. Chamber of Commerce
www.uschamber.com/coronavirus
Q&A with Inc. and the U.S. Chamber
https://www.inc.com/stimulus-2020-qa?utm_source=incthismorning
Download resources here
Small Business Emergency Loan Guide and Checklist
| 040920_emergency_loans_update.pdf |
Economic Injury Disaster Loan Guide
| 04092020_eidl_guide.pdf |
FMLA Paid Leave Programs Guide
| 04092020_fmla_paid-leave-programs-guide.pdf |
Employee Retention Tax Credit Guide
| 04092020_employee-retention-tax-credit_guide.pdf |
Treasury Department Information on the Payroll Protection Program
| ppp--fact-sheet.pdf |
SBA EIDL Loan Application
This Video will take you thru the SBA EIDL loan application line by line and describe how to fill it out. It was prepared for small business owners in Bell and Coryell counties.
Contact Jason Ehler, McLennan SBDC, at 254-624-5440 or email him at jehler@mclennan.edu.
Contact Jason Ehler, McLennan SBDC, at 254-624-5440 or email him at jehler@mclennan.edu.
Download resources here
| three_step_process_sba_disaster_loans.pdf |
| the_small_business_owners_guide_to_the_cares_act__1_.pdf |
faith-based organizations
All faith-based organizations impacted by COVID-19 are eligible to participate in the Paycheck Protection Program and the Economic Injury Disaster Loan program, without restrictions based on their religious identity or activities, to the extent they meet the eligibility criteria outlined in the CARES Act.
Contact Jason Ehler, McLennan SBDC, at 254-624-5440 or email him at jehler@mclennan.edu.
Contact Jason Ehler, McLennan SBDC, at 254-624-5440 or email him at jehler@mclennan.edu.
Download resources here
| 20-31_04_04_20_final_faith-based_ppp_eidl_release.pdf |
| ppp--agreement_for_new_lenders_banks_credit_unions_fcs_w_seal.pdf |
