The community is going through an unprecedented disruption together, but we have been tested before in different ways, and always emerge stronger – and there is no doubt this will prove true once again.
In order to help our members navigate these trying times, we have teamed up with NOACC to keep you up to date on business resources for both you and your employees. These resources are updated several times a day. Please click on the link below to access these resources and updates.
The Chamber is here for all of you. Please do not hesitate to contact us if you need anything.
TIME SENSITIVE INFO REGARDING PAYCHECK PROTECTION PROGRAM
Paycheck Protection Program loan is time sensitive; first come first served, so I wanted you to be able to jump on this today.
Guidance just came out from the SBA last night so there are some new things that we have learned:
- Payments to independent contractors are not to be used in computing the loan amount.
- The maximum loan is based on the monthly average of your payroll costs paid over the last 12 months (so April 1, 2019 through March 31, 2020)
- Payroll costs include:
- compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; based on employer record
- cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips);
- payment for vacation, parental, family, medical, or sick leave;
- allowance for separation or dismissal;
- payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement plan contributions;
- payment of state and local taxes assessed on compensation of employees
- Do not count compensation in excess of $100,000 for any individual employee or any qualified sick and family leave wages where you are claiming a credit under the Families First Coronavirus Response Act.
- You must complete SBA Form 2483 (this was from 9:00 last night) (click here for form)
- You must also submit payroll documentation supporting the loan amount. These will be your Form 941s for the period April 1, 2019 through March 31, 2020. You should also submit documentation for the costs of group health insurance, retirement plan contributions made in the last 12 months, and any state and local payroll taxes on compensation.
- The loan will accrue interest at 1.0%.
- Any amounts not forgiven must be repaid over two years.
- E-signatures will be allowed on the application.
There are some things not addressed in the notice:
- Nothing on the affiliation rules (who gets aggregated in businesses with common ownership)
- Do guaranteed payments to partners or partner’s self-employment earning get included in the payroll amount
It is important to note that there are requirements for spending the P3 funding which may limit your loan forgiveness. I wanted to keep this email simple so you can get started.
At this point we don’t know when the banks will open the floodgates, but you should be ready today. The SBA guidance makes it clear that the loan funds are made on a first come first served basis and there are limited funds in the pot.
For more information please contact your commercial lender immediately or the City of Brooklyn Department of Economic Development at 216-635-4289
Andi Udris, Director