Information and Form to complete below - 3 Steps
1 - To get started, complete the information and questions below in SBA PPP Lead
2 - You will receive an email with detailed instructions after completing the SBA PPP Lead (below) on what is needed to submit along with Form 2483 (Application)
3 - Return all items in one email to sba@jupfin.com for submission
Code: 1000
1 - To get started, complete the information and questions below in SBA PPP Lead
2 - You will receive an email with detailed instructions after completing the SBA PPP Lead (below) on what is needed to submit along with Form 2483 (Application)
3 - Return all items in one email to sba@jupfin.com for submission
Code: 1000
questions & form to be completed
information
Temporary New Business Loan Program: Paycheck Protection Program
Overview
The CARES Act was enacted to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 emergency. Among the provisions contained in the CARES Act are provisions authorizing SBA to temporarily guarantee loans under a new 7(a) loan program titled the “Paycheck Protection Program.” Loans guaranteed under the Paycheck Protection Program (PPP) will be 100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. The following outlines the key provisions of the PPP.
General
SBA is authorized to guarantee loans under the PPP through June 30, 2020. Congress authorized a program level of $349,000,000,000 to provide guaranteed loans under this new 7(a) program. The intent of the Act is that SBA provide relief to America’s small businesses expeditiously, which is expressed in the Act by giving all lenders delegated authority and streamlining the requirements of the regular 7(a) loan program.
Am I eligible?
You are eligible for a PPP loan if:
You are not eligible for a PPP loan if any of the following is true:
I am eligible. How much can I borrow?
Under the PPP, the maximum loan amount is $10 million or an amount that you will calculate (see below)
Example 1 – No employees make more than $100,000
Annual payroll: $120,000
Average monthly payroll: $10,000
Multiply by 2.5 = $25,000
Maximum loan amount is $25,000
Example 2 – No employees make more than $100,000, outstanding EIDL loan of $10,000.
Annual payroll: $120,000
Average monthly payroll: $10,000
Multiply by 2.5 = $25,000
Add EIDL loan of $10,000 = $35,000
Maximum loan amount is $35,000
Example 3 – Some employees make more than $100,000
Annual payroll: $1,500,000
Subtract compensation amounts in excess of an annual salary of $100,000: $1,200,000
Average monthly qualifying payroll: $100,000
Multiply by 2.5 = $250,000
Maximim loan amount is $250,000
What qualifies as “payroll costs?”
Is there anything from payroll costs that cannot be included?
Yes. The Act excludes the following:
Do independent contractors count as employees for purposes of PPP loan calculations?
No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation.
What is the interest rate on a PPP loan?
The interest rate will 1%
When is the maturity date on a PPP loan?
2 years
Can I apply for more than one PPP loan?
No.
Can I use e-signatures or e-consents if a borrower has multiple owners?
Yes, e-signature or e-consents can be used
Is the PPP “first-come, first-served?”
Yes.
When will I have to begin paying principal and interest on my PPP loan?
You will not have to make any payments for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment. The Act authorizes the Administrator to defer loan payments for up to one year.
Can my PPP loan be forgiven in whole or in part?
Yes. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. The borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes described below and employee and compensation levels are maintained.
The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan.
However, not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.
Do independent contractors count as employees for purposes of PPP loan forgiveness?
No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan forgiveness.
What do I need to submit?
What can I use the loan for?
This information serves as a guide of the SBA PPP Application process. All information was taken from the Small Business Administration website. For the most updated information, please visit www.sba.gov
Overview
The CARES Act was enacted to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 emergency. Among the provisions contained in the CARES Act are provisions authorizing SBA to temporarily guarantee loans under a new 7(a) loan program titled the “Paycheck Protection Program.” Loans guaranteed under the Paycheck Protection Program (PPP) will be 100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. The following outlines the key provisions of the PPP.
General
SBA is authorized to guarantee loans under the PPP through June 30, 2020. Congress authorized a program level of $349,000,000,000 to provide guaranteed loans under this new 7(a) program. The intent of the Act is that SBA provide relief to America’s small businesses expeditiously, which is expressed in the Act by giving all lenders delegated authority and streamlining the requirements of the regular 7(a) loan program.
Am I eligible?
You are eligible for a PPP loan if:
- you less than 500 employees or are a business that operates in a certain industry and meet the applicable SBA employee-based size standards for that industry, and you are a small business or a tax-exempt nonprofit organization/a tax-exempt veterans organization/Tribal business
- You were in operation on February 15, 2020 and either had employees for whom you paid salaries and payroll taxes or paid independent contractors paid by 1099-MISC
- A sole proprietorship or as an independent contractor or eligible self- employed individual, you were in operation on February 15, 2020.
- payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship.
- If you do not have the above, bank records showing payroll amount may be accepted
You are not eligible for a PPP loan if any of the following is true:
- You are engaged in any activity that is illegal under federal, state, or local law
- You are a household employer (ex.household employees such as nannies or housekeepers)
- An owner of 20 percent or more of the equity of the applicant is incarcerated, on probation, on parole; presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of a felony within the last five years
- You, or any business owned has ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted within the last seven years and caused a loss to the government.
I am eligible. How much can I borrow?
Under the PPP, the maximum loan amount is $10 million or an amount that you will calculate (see below)
- Total payroll costs from the last 12 months for employees
- Subtract any compensation paid to an employee/contractor who made a salary of $100,000 or more
- Divide the number by 12 to get the average monthly payroll costs
- Multiply by 2.5
- If applicable, add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).
Example 1 – No employees make more than $100,000
Annual payroll: $120,000
Average monthly payroll: $10,000
Multiply by 2.5 = $25,000
Maximum loan amount is $25,000
Example 2 – No employees make more than $100,000, outstanding EIDL loan of $10,000.
Annual payroll: $120,000
Average monthly payroll: $10,000
Multiply by 2.5 = $25,000
Add EIDL loan of $10,000 = $35,000
Maximum loan amount is $35,000
Example 3 – Some employees make more than $100,000
Annual payroll: $1,500,000
Subtract compensation amounts in excess of an annual salary of $100,000: $1,200,000
Average monthly qualifying payroll: $100,000
Multiply by 2.5 = $250,000
Maximim loan amount is $250,000
What qualifies as “payroll costs?”
- compensation to employees: salary, wages, commissions, or similar compensation
- cash tips or the equivalent (based on employer records)
- payment for vacation, parental, family, medical, or sick leave
- allowance for separation or dismissal
- payment for employee benefits like group health care coverage, insurance premiums, and retirement
- payment of state and local taxes on employee payroll
- for an independent contractor or sole proprietor: wage, commissions, income, or net earnings from self-employment or similar compensation.
Is there anything from payroll costs that cannot be included?
Yes. The Act excludes the following:
- Any compensation of an employee whose principal place of residence is outside of the United States
- The compensation of an individual employee with an annual salary of $100,000
- Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees
- Sick and family leave wages
Do independent contractors count as employees for purposes of PPP loan calculations?
No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation.
What is the interest rate on a PPP loan?
The interest rate will 1%
When is the maturity date on a PPP loan?
2 years
Can I apply for more than one PPP loan?
No.
Can I use e-signatures or e-consents if a borrower has multiple owners?
Yes, e-signature or e-consents can be used
Is the PPP “first-come, first-served?”
Yes.
When will I have to begin paying principal and interest on my PPP loan?
You will not have to make any payments for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment. The Act authorizes the Administrator to defer loan payments for up to one year.
Can my PPP loan be forgiven in whole or in part?
Yes. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. The borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes described below and employee and compensation levels are maintained.
The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan.
However, not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.
Do independent contractors count as employees for purposes of PPP loan forgiveness?
No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan forgiveness.
What do I need to submit?
- PPP Application Form
- Payroll documentation - 2019 Form 940 and/or 941s or Form 1099-MISC, or income and expenses from a sole proprietorship
What can I use the loan for?
- payroll costs
- costs related to group health care benefits and insurance premiums
- mortgage interest payments (but not mortgage prepayments or principal payments)
- rent payments
- utility payments
- interest payments on any other debt obligations that were incurred before February 15, 2020
- refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020.
This information serves as a guide of the SBA PPP Application process. All information was taken from the Small Business Administration website. For the most updated information, please visit www.sba.gov
