About the Paycheck Protection Program (PPP):

In response to the COVID-19 pandemic, the Paycheck Protection Program (PPP) was established by the CARES Act and is implemented by the Small Business Administration with support from the Department of the Treasury. 

This PPP provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Small businesses 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.

 First-round PPP Loan Applicants:

If you have not previously applied for a PPP Loan, you now can if your business meets the following requirements:

  1. Loan amount is average monthly payroll costs in 2019 or the last 12 months, multiplied by 2.5 (or 3.5 if accommodation or food service business).
  2. You may qualify even if you took the Employee Retention Tax Credit.
  3. Forgivable options if the loan is used for qualifying expenses.  At a minimum, 60% of the loan needs to be used for payroll costs.
  4. Eligible entities need to have been in operation before 2/15/2020.
  5. For payroll, provide either Schedule C, 941, or business tax returns, which ever applies to your business structure.
  6. No more than 500 employees or your industry’s applicable SBA revenue-based size standard.
  7. Businesses, Independent contractors, self-employed individuals, sole proprietors, tax-exempt non-profit organizations, veteran organizations, Tribal businesses.

Second-round PPP Loan Applicants:

If you already used your 1st draw PPP and now would like to apply for additional funding, here are the application requirements:

  1. Available to businesses that have already exhausted the first-round PPP program.
  2. Business must have less than 300 employees.
  3. Business must have a 25% reduction in gross receipts in at least one quarter of 2020 compared to the same quarter of 2019.
  4. Loan amount is average monthly payroll costs in 2019 or the last 12 months, multiplied by 2.5 (or 3.5 if accommodation or food service business).
  5. Forgivable options if the loan is used for qualifying expenses.  At a minimum, 60% of the loan needs to be used for payroll costs.
  6. $2 million maximum loan amount.

 Eligible Expenses:

To maximize your PPP loan forgiveness, 60% of the PPP loan must be used towards payroll and 40% towards eligible expenses. Eligible expenses include:

  1. Rent.
  2. Utilities.
  3. Mortgage interest on business loans incurred prior to February 5, 2020.
  4. Operations expenses defined as payments for business software and cloud computing services and other human resources and accounting needs that facilitate business operations.
  5. Supplier costs defined as payments to a supplier for goods that are essential to the operations of the borrower pursuant to a contract or purchase order in effect before the PPP loan is disbursed or with respect to perishable goods, in effect at any time.
  6. Worker protection expenses defined as operating or capital expenditures to comply with public health guidance related to COVID-19, including things like drive-through windows and sneeze guards and the purchase of personal protective equipment (PPE).
  7. Covered property damage costs defined as costs related to property damage or looting due to public disturbances in 2020 that are not covered by insurance or other compensation. 

More Borrower Information here (3/31/2020)

To Apply FOR PPP:

1st Draw Application:

2nd Draw Application:

Additional ADC Documentation Required:

ADC Credit Report Permission Slip: DOWNLOAD either WORD DOC. or PDF.

Signature Authorization Resolution:  DOWNLOAD either WORD DOC. or PDF.

 

Required Supporting Documentation:

If you have employees:

  1. IRS Form 941 Employer's Quarterly Tax Return for period Ending March 31, 2019, June 30, 2019, September 30, 2019, and December 31, 2019.
  2. Payroll ledgers reflecting each employee’s compensation for the following periods Jan 2019 to Feb 2020 (14 Months Total)
  3. February 2020 bank statement 

If you are self-employed:

  1. 2019 Schedule C
  2. February 2020 bank statement

For additional information, visit the US Department of Treasury.

Submit Application and Supporting Documents to [email protected]

 

FORGIVENESS APPLICATION:

Submit forgiveness application to: [email protected] or for help, please contact Habtamu Gana on 612-877-8266