U.S. Treasury Releases CARES Act Loan Application
On March 31, 2020, the U.S. Department of Treasury released the loan application form for the Paycheck Protection Program, part of the CARES Act passed on March 27, 2020. The application form can be found here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
The SBA has added information about the Paycheck Protection Program on its website here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
We published an article outlining the CARES Act here: Congress Passes CARES Act to Stimulate Business Efforts
The U.S. Department of Treasury and the Small Business Administration (SBA) have begun to define the application process, and will likely provide more guidance this week.
Starting this Friday, April 3, 2020, small businesses and sole proprietorships can apply for Paycheck Protection Program loans through existing SBA lenders.
Starting April 10, 2020, independent contractors and self-employed individuals can apply for Paycheck Protection Program loans through existing SBA lenders. Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
Immediate steps to take:
1. Speak with your banker as soon as possible. Bankers at existing SBA lenders will likely be able to help current clients and prospects in submitting loan applications and getting them approved. Your banker will instruct you what documents to collect.
2. Collect financial documents:
- 2019 payroll information
- IRS Form 941 for all four quarters of your 2019 payroll
- Group health care benefit payment information for 2019
- State & Local Taxes assessed on the compensation of employees for 2019
- Retirement Plan contributions made in 2019
- Calculation of average monthly payroll for 2019 (capped at $100,000 on an annualized basis for each employee)
- Copies of lease for business property , mortgage statements and 2019 utility bills
- Current Organizational documents
- List of all owners with more than 20% ownership stakes
- List of other businesses owned by the business
- List of other businesses owned by owners of the business
- List of other businesses with common management as the business
- General Liability Insurance Certificate
- Business Financial Statements including tax returns
- COVID-19 impact statement
- 8-week forecast of payroll, rent, mortgage interest and utilities
- Any other documents requested from lender
3. Submit loan application as soon as able. Before signing any loan documents, review with counsel to ensure you understand the loan provisions, repayment obligations, and conditions of potential forgiveness.
These are three general suggestions to help focus on the issues at hand. Contact the attorneys at Burke, Warren, MacKay & Serritella, P.C. for guidance on how to address any of these issues.