The $2.2 trillion in financial relief and economic stimulus appropriated by Congress will be allocated to U.S. businesses and citizens in many different ways. One method is the Paycheck Protection Program (PPP). Managed by the Small Business Administration, this $350 billion dollar program will use local banks to accept applications and manage loan disbursements. That program had been scheduled to go live early this morning but was pushed back to late this afternoon.
“The subject matter experts we have contacted on behalf of the U.S. air show community are advising anyone interested in this program to contact the bank with which they conduct their air show business as soon as possible to begin the process of applying for this financial assistance,” says ICAS Foundation Executive Director Mike Kaufman.
PPP will provide cash-flow assistance to small businesses in the U.S. through forgivable loans that are used to help maintain payroll during the pandemic. These loans are up to 100% forgivable if used to maintain payroll during the eight-week period beginning on the date of loan origination. Loan proceeds may also be used to pay for rent and utility payments, according to Kaufman.
Currently, PPP loans are only available to businesses with employees. Loan applications for a parallel program for independent contractors or sole proprietors will be available through the bank with which you do business beginning one week from today, April 10.
For businesses with employees and payroll, here’s how to apply: 1) Gather documentation for the last 12 months of payroll for all your employees (the total amount available to a borrower is the 12-month average multiplied by 2.5); 2) Gather information (financial reports, bank statements, etc.) that documents your business’s revenue and expenses prior to February 15th, 2020; 3) Gather tax documents (including tax returns for 2017, 2018 and 2019) that include your EIN or TIN number; and 4) Contact your local bank to apply for the PPP loan and to confirm what other documentation might be necessary.
If you are a sole proprietor or are self-employed, document your past 12 months of income (including 1099s and other expenses from your business) and contact your local bank to apply for this PPP loan. Your bank will give your further guidance on other documents they may require, available loan amounts, and forgiveness options. Remember that the sole proprietor/self-employed PPP applications are not yet available, but should be ready next Friday, April 10.
A quick guide containing further program details can be found at: https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
You can download an Excel spreadsheet to help you prepare for your loan application by visiting this website address:https://www.dropbox.com/s/t7zu3xokcxr8xp7/SBA%207a%20PPP%20Blank.xlsx?dl=0