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Updated 4/3/2020

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David G. Bell, CEO 

Paycheck Protection Program Preparation

The Paycheck Protection Program was passed and signed into law by President Donald Trump this past Friday.  The coronavirus stimulus bill is on a fast track and intended to benefit millions of Americans employed by small businesses.  The bill authorizes up to $349 billion toward job retention and certain other expenses.

 

The program applies to Small businesses (<500 EE's)  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.

If you believe that you will qualify for relief, you should plan to contact and work with your current lender.

Most lenders have advised that small business clients will need to apply online when the application period begins.  If you aren’t signed up for on-line banking, it is a good idea to get set up in anticipation of the program launch.  You will need to monitor your bank to receive communications regarding the process.

It also may be helpful to gather the following business documents now and for when programs become available:

  • 2019 Payroll – total payroll for full-year 2019, by employee, as reported to the IRS

  • 2019 Independent Contractor Costs – Listing of 1099’s-MISC for 2019 independent contractors, by person, as reported to the IRS. (Note: Do NOT include 1099’s for services)

  • The most recent healthcare bill

  • Payroll report – as of February 15, 2020 or closest date after that date and by employee

Other information – required by the application is available at the U.S. Treasury website.

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