Summary

First, the Small Business Administration issued implementation guidelines for the PPP on April 2nd, 2020. A redacted version of those guidelines is attached to this email. This redacted version contains the information most relevant to you, and it is presented in a Q&A format. Please read all of it (8 pages), as it discusses everything from who is eligible, for how much, how to apply, and how to repay or achieve forgiveness. If you want to read the full final rule (31 pages), it is available here: https://home.treasury.gov/system/files/136/PPP–IFRN%20FINAL.pdf

Second, banks are now reporting they will be able to process applications as early as today (probably later in the day). The PPP was modified slightly in the last day to make sure all community banks could participate. Your bank should be part of this. Check out your back’s website for information, or contact them directly. The form of application is available here: https://www.sba.gov/sites/default/files/2020-04/PPP%20Borrower%20Application%20Form.pdf. Note this form is not a fillable pdf, so it is likely not the actual form you will be asked to complete, but you should review it to be ready. There will also be a personal guaranty in some circumstances, and that fillable pdf form is available here: https://home.treasury.gov/system/files/136/PPP-Lender-Application-Form-Fillable.pdf

Third, and importantly, the SBA has given guidance on what you will need to apply. Have these documents available (and remember you are probably applying online, so make scans):

• Copies of quarterly and year end payroll tax reports filed with the IRS (including Forms 941, 940, state income and unemployment tax filing reports) for 2019.
• Copies of payroll reports for each pay period for the preceding 12 months. Such reports should include gross wages including PTO (which might include vacation, sick, and other PTO). This includes payroll reports through the pay period preceding the origination of the SBA loan.
• Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for the immediately preceding 12 months prior to the date of the SBA loan origination. Copies of the monthly invoices should suffice.
• Documentation of all retirement plan funding by the employer for the immediately preceding 12 months. Copies of workpapers, schedules and remittances to the retirement plan administrator should be sufficient.

This will be the oddest loan application you have ever submitted. Banks are advised by the SBA they need not engage in further verification.

Can AWD LAW help me?

AWD LAW is here to answer your questions. This summary is intended to serve as general information for interested persons, but it is not legal advice for any specific situation. AWD LAW attorneys are available to answer fact-specific questions for our clients. Our number is (928) 774-1478.