By Lee Allphin, Employer Advantage Founder and Chairman of the Board
Business uncertainty spreads rapidly during a pandemic, causing major disruptions and challenges for employers and their employees. Because achieving the full benefits of the government’s assistance is a complex process, many employers have been missing out on COVID-19 aid like the CARES Act, which provides critical assistance for companies struggling to survive these turbulent times.
Employer Advantage is sharing important information to guide our clients through the application processes for attaining the Paycheck Protection Program (PPP) loans and receiving PPP loan forgiveness. Please contact us if you would like further assistance during the Coronavirus pandemic or with any of your other Employee Administration and Compliance responsibilities: Info@EmployerAdvantage.com | 800.467.3909
IT’S NOT TOO LATE TO APPLY FOR A PAYCHECK PROTECTION PROGRAM LOAN
The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 a.m. EDT in response to the President signing the program’s extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.
The purpose of the CARES Act forgiveness provision is to prevent layoffs during this unprecedented period of business shutdown, in compliance with government guidelines to stop the spread of the COVID-19 Coronavirus. More than an interest-free loan, PPP offers total loan forgiveness, which in essence, makes it a grant.
For more information regarding applying for a Paycheck Protection Program Loan, please contact us: Info@EmployerAdvantage.com | 800.467.3909
HOW TO APPLY FOR LOAN FORGIVENESS IF YOU ALREADY HAVE A PPP LOAN
Getting a PPP loan for your business is a big first step. But to achieve loan forgiveness, Employers must be diligent about documentation and compliance with the loan guidelines as well as be sure to fill out the Loan Forgiveness Application.
Please note, unlike the initial PPP loan application, there is no immediate rush to complete this process. Employers will have 10 months after the end of their loan covered period to submit for forgiveness. You should consider applying for loan forgiveness when you have restored your employee and compensation levels to what they were as of February 15, 2020.
- Borrowers should first check with their lender to determine whether the lender has their own form, and what other documents they will need.
- Click here for the newly revised PPP Loan Forgiveness Application and instructions.
- Complete basic company information on the main Loan Forgiveness Calculation form
- Complete Schedule A Worksheet to see if you meet the headcount and pay requirements
- Complete Schedule A to find your payroll and compensation costs
- Complete the rest of the Loan Forgiveness Calculation Form to determine your total eligible costs and our forgiveness amount
- In addition, the SBA also released an “EZ” version of the PPP Loan Forgiveness Application for companies who qualify in any one of these three categories:
i.) Borrowers who are self-employed and do not have employees, and did not use any employee salaries for the computations on the Borrower Application Form, OR
ii.) Borrowers who did not reduce employees’ wages by more than 25% and did not reduce the number of employees or the average paid hours of employees, OR
iii.) Borrowers who experienced reductions in business as a result of government COVID-19 directives regarding sanitation, social distancing, or other safety requirements, but did not reduce employee wages by more than 25%
8. The lender has up to 60 days to review the application and issue a decision to SBA, and request payment for the forgiven amount. The SBA then has up to 90 days to review the loan application and remit the appropriate forgiveness amount to the lender.
For more information regarding filling out your PPP Loan Application, please contact us: Info@EmployerAdvantage.com | 800.467.3909
See our other helpful blog…THE ESSENTIAL COVID-19 TOOLBOX FOR EMPLOYERS
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A New Path to HR Bliss – Trusted for more than 30 years, Employer Advantage frees you from the administrative and compliance burdens of having employees so you can focus on your business success. Versatile enough for companies of all sizes, our unique service combines comprehensive management of your employee administration and compliance with the latest software solutions, tailored to meet your individual needs and company culture. Our full-service management of HR, payroll, health and benefits, workplace safety, and more, enhances your profitability while reducing the costs and risks associated with employment law compliance. We provide your employees with top-notch assistance and benefits that help you increase productivity, save time and money, and attract and retain a talented workforce. And for small and mid-sized businesses, we bring you economy of scale with access to Fortune-500-level benefits, specialty assistance, and savings that would not be possible to attain on your own. Headquartered in the Midwest and serving more than 400 companies and 10,000 worksite employees throughout the country, Employer Advantage is an IRS-Certified Professional Employer Organization (PEO) (C-PEO). Experienced, certified, and trusted. www.EmployerAdvantage.com