Dear Journey Clients,
The applications for the “Paycheck Protection Program” (aka “PPP”) will be accepted by SBA approved banks this Friday, April 3rd. We urge all of our clients to speak to their banker about this program and the Employee Retention Tax Credit and decide if one of these options are best (REMINDER: you cannot do the PPP and Employee Retention Tax Credit, you must pick one.). If you do not fully understand the Paycheck Protection Program, please read one of our latest blogs, CARES Act: How to Apply for a Small Business Disaster Loan.
Guidelines: The guide by the US Chamber of Commerce and Fact Sheet from the Department of Treasury will help you see the details as they are written today. With that being said, things are subject to change and/or be ironed out differently than expected. As it stands now, loans can be for up to two months of your average monthly payroll costs based on the last year plus an additional 25% of that amount.
Application: The banks are accepting applications on Friday, April 3rd, though we recommend you complete the application today. PPP Official Application
Loan Checklist: Each bank will be different on what they will require you to provide. If your bank does not have their checklist ready, click COVID-19 Resources and download “PPP Loan Checklist” for a template and what we expect them to ask. This checklist may not be everything they ask for, though it will be a strong starting point.
Payroll Reporting Needs: With the specific rules to this loan, we are customizing a new report that covers all of the needs for this loan program. To prepare you for any curve-balls that might be thrown at you when you turn your application in, we want to make sure you and your banker have all of the information. If your banker is forced to pivot, we do not want to slow them down. In an effort to be proactive, anyone that asks for the “PPP Reports” will receive three attachments. The three reports are:
- Payroll Cost Calculation Report (Excel)
- Why are we providing an excel report? Along with the banks potentially being forced to pivot, we are already finding inconsistencies in how they will calculate this. At the end of the day, it is up to the banks to determine much of the interpretation. This is why we show each column in excel, so they can recalculate as they see fit.
- Employees Over 100k (Excel)
- Explanation document showing how these numbers are calculated (PDF) Click here for the explanation document.
Right Now: We recommend you do the following:
- Understand the rules
- Have the application complete and ready to go
- If needed, email your Journey Payroll Specialist and say you need the “PPP Reports”
- Go through the entire checklist that we expect your banker will need. You can ask your banker for the list directly, though many do not have it ready. If they do not have it available, we recommend starting with the template we provide. Ask your banker how they prefer to receive the information. Some say via email, and some have a specific portal. Be ready!
- Breathe. You got this! We are proud of you!
If you need to be connected with a local Banker, CPA, or Attorney that we know
and have worked with, please let us know.
Your Journey Team