SBA 7A Paycheck Protection Program Quick Facts
We are not legal professionals, and cannot provide legal advice. APM Help is a group of AppFolio, Propertyware, Buildium and Property Management experts and are happy to assist in the loan application process. The government has approved a second round of PPP loans and funding on April 27th, so it’s not too late to apply if you missed the first round of applications!
This blog will be updated as new information comes available.
Last updated: 4 May 2020
SBA 7A Paycheck Protection Program
- Available to companies with 500 or less employees
- The loan will cover payroll costs (75% of the loan), mortgage interest, rent and utilities (must have been claimed on 2019 Form 1040 Schedule C for forgiveness) for 8 weeks
- The loan is forgivable as well as employee and compensation levels are maintained and it’s only used to cover the items in the first point
- Payroll costs are capped at $100,000 per employee
- Small businesses can apply starting on April 3, 2020
- Independent contractors and self-employed individuals can apply starting on April 10, 2020
- You can apply through June 30,2020, but there is a funding cap so be sure to apply as soon as possible
- Loans have a 1.00% interest rate and the loan balance must be paid within 2 years
What can you use the loan for?
- Payroll costs, including benefits (previous 12 months or 2019 calendar year)
- Interest on mortgage balance incurred before February 15, 2020
- Rent amounts agreed on leases signed before February 15, 2020
- Utilities for services that began before February 15, 2020
What do you need to apply?
- Complete the Paycheck Protection Program loan application (found here)
- Submit the application and other required documents (varies based on the lender requirements)
Where can you apply?
- Any existing SBA Lender (find your local lender here)
- Any federally insured depository institution
- A federally insured credit union
- A Farm Credit System institution
- Other lenders not listed above will be able to make a loan once they are approved and enrolled in this program
Does the PPP loan cover sick days?
Yes, it covers payroll costs including paid vacation, parental, family, medical and sick leave. The employer could be entitled to a refundable tax credit for any sick time related to COVID-19. Review the specifications in this IRS article.
What documents do I need to qualify for Loan Forgiveness?
Up front, it seems pretty simple to get forgiveness on your PPP loan, but it might not be as straightforward as we originally thought. The American Institute of CPAs provided a step-by-step guide to calculating your loan forgiveness. You will need to provide the following documents to your lender after determining if you qualify for Loan Forgiveness:
Documents verifying the number of full-time equivalent employees on payroll and their pay rates, for the periods used to verify you met the staffing and pay requirements:
- Payroll reports from your payroll provider
- Payroll tax filings (Form 941)
- Income, payroll, and unemployment insurance filings from your state
- Documents verifying any retirement and health insurance contributions
Documents verifying your eligible interest, rent, and utility payments (canceled checks, payment receipts, account statements)
** requirements may vary by lender
For additional information, please visit this webpage. If you would like APM Help to assist you in the application process please call us/text us at 281-949-8755 or email firstname.lastname@example.org.