As mentioned in our previous email and blog post, on Friday President Trump signed a $2 trillion stimulus package. In a move designed to keep small businesses afloat, the CARES Act allocates $349 billion to loans the Paycheck Protection Program loans under the Small Business Administration. We provided details on the Program in a previous post.
Lenders are working out the final details with the Small Business Administration (SBA), but you can take steps now to prepare for the application process to avoid delays. Applications may be ready to be processed as early as next week.
We suggest that you contact your bank and ask if they are qualified SBA 7(a) lenders and participating in the Payback Protection Program. Inform them of your interest in applying and ask how you can prepare. Please feel free to reach out to our team with questions.
While the details of the application are still being finalized with lenders and the SBA, you can prepare now by gathering the documents we expect to be required, those documents are outlined below:
2019 IRS Quarterly 940, 941 or 944 payroll tax reports
Last 12 months of Payroll Reports beginning with your last payroll date (ended February 15, 2020) and going backward 12 months. Reports should include gross wage per employee (including officer), PTO, vacation, and any family/ medical leave pay.
State and Local taxes assessed on employee compensation for each employee
1099’s for 2019 for independent contractors that would otherwise be an employee of your business (do not include 1099s for services i.e. payroll processing, legal services).
Documentation showing a total of all health insurance premiums paid by the Company/Owner under a group health plan (including owners)
Retirement plan match paid for each employee, including owners