Paycheck Protection Program and Florida Stay Close to Home Details

04/03/2020

Starting on April 3, 2020 the Paycheck Protection Program (PPP) will allow up to $349 billion in forgivable loans to small businesses for use to provide wages to their employees during the COVID-19 crisis. Businesses that are interested in applying for the PPP should do so sooner rather than later as there is expected to be a high demand for funds. It should be noted that all loan terms will be the SAME for EVERYONE.

Eligible businesses are those with 500 employees or less, and this includes sole proprietors and other self-employed individuals. Small businesses should contact their financial institution and inquire on if and how they are accepting applications for the PPP. Those planning to apply for the PPP can find the application here. Our firm recommends that when a small business applies for the PPP to have the following items available for convenience when completing their application:

  1. Quarterly Payroll Tax Reports for 2nd, 3rd and 4th quarter of 2019 (Form 941 and RT-6 State Unemployment Return)
  2. Quarterly Payroll Tax Report if completed for 1st quarter 2020
  3. Payroll Summary or Registers for April 1, 2019 – March 31, 2020
  4. All W3’s and W2’s for 2019
  5. Form 1099’s as they apply to their contractors/vendors of service
  6. Paid Employer paid insurance benefit invoices for April 1, 2019 through March 30, 2020
  7. Proof of payment on retirement plan contributions for April 1, 2019 through March 30, 2020
  8. Prepare an excel spreadsheet summarizing the Payroll Costs above to supply to banker to help them be organized
  9. SBA Form 2483
  10. Need year end summary for 2019 health insurance premiums
  11. Drivers Licenses for all owners
  12. Articles of Incorporation

Additional details regarding the PPP include:

  • It is a temporary type of SBA Loan.
  • Loan size is equal to 250% of the employer’s average monthly payroll, not to exceed $10 million.
  • The loan can be used to refinance recent SBA Disaster loans.
  • There are no personal guarantees and no collateral is required.
  • Loan Forgiveness – The total amount forgivable equals what you pay in eligible payroll costs. Covering 8-week period starting on the loan origination date. These costs are payroll, rent, utilities and payments of interest on any covered mortgage obligation.
  • For any unrelieved amount there will be a 10-year maximum term and a 4% maximum interest rate.
  • These loans are to be applied for through a local financial institution.
  • There will be no fee to apply and no pre-payment penalties.
  • There are additional funds for specific industries (i.e. healthcare).
  • As of this writing the SBA has not issued final regulations in regards to the application, as this is still in draft form but can be used at the present time. Additionally the document request list noted above my differ from financial institution to financial institution.

Our team members at MNMW are available to assist with any calculations if needed. Please feel free to contact us via phone, email, or website to arrange for a discussion on this matter.

For more detailed information regarding the PPP and how it may apply to your business, you can visit this link.

Florida Stay Close To Home Order

In continued efforts to contain and slow the spread of the Coronavirus, Governor Ron DeSantis issued a stay-at-home order for the state of Florida beginning at 12:01 am on Friday, April 3, 2020. This order is in effect for 30 days and directs Floridians to limit their movements and personal interactions outside of the home to only those necessary for essential services. It further notes that essential employees should continue working while this order is in place.

The accounting industry is considered essential for the infrastructure of the country, so MNMW will still be working for our clients. MNMW team members are primarily working remotely, and we have procedures in place to lessen any disruption to client service as well as meet the needs of those we work with. We are a cloud-based firm and our team is still available by email, phone and other electronic means. We encourage you to use our secure portal, where any sensitive or private documents can be sent to our team members. You can access the portal here: https://www.markham-norton.com/resources/send-files/