DOL Provides Guidance on the Families First ActApril 1, 2020
Paycheck Protection Program UpdateApril 7, 2020
On 3/31/20 the US Department of Treasury posted additional information on their website regarding the Paycheck Protection Program (PPP). Below are some of the details we learned from this information:
- Starting on April 3rd, small businesses and sole proprietorships can apply for and receive PPP loans.
- Starting on April 10th, independent contractors and self-employed individuals can apply for and receive PPP loans.
- In calculating “average monthly payroll” to determine loan size, most applicants will use the average monthly payroll for 2019. Seasonal businesses may elect to use the average for the time period between February 15, 2019 and June 30, 2019. New businesses will use the time period January 1, 2020 to February 29, 2020. **No matter which time period is used, costs over $100,000 on an annualized basis for each employee are excluded.
- In order to qualify for full 100% forgiveness, you have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
- The loan (if not forgiven) is due in two years and has a fixed rate of 0.50%.
- All payments are deferred for 6 months; however, interest will accrue over this period.
- You can use an agent (like at accountant), to help you complete the application.
- A copy of the application is available (see link below).
You can find all of the documents on the US Department of Treasury website.
As you begin collecting payroll information and working on your loan application, let us know if you need assistance. We are here to help. Reach out to your WR Partner or you relationship manager. You can also email our COVID-19 task force for assistance: COVID19TASKFORCE@websterrogers.com.
WR COVID-19 Task Force