Following are some of the key provisions of the Paycheck Protection Program under the CARES Act:
>Federally -guaranteed loans up to $10 million to eligible businesses which can be partially forgivable.
> The Paycheck Protection Program covers the period beginning February 15, 2020 and ending on June 30, 2020 (the Covered Period).
>Authorized use of proceeds include: payroll costs; costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums; employee salaries, commissions, or similar compensation; mortgage interest payments (but not any prepayment of or payment of principal on a mortgage obligation); rent; utilities; and interest on any other debt obligations that were incurred before the Covered Period.
>During the Covered Period, the maximum loan amount for an eligible entity is the lesser of $10 million and an amount calculated based on a payroll formula that essentially equals 2.5x the average total monthly payroll cost incurred in the on-year period before the loan is made.
>Interest rates not to exceed 4%
>The program goes live Friday, April 3.
>Apply with your local bank, not the SBA. Applications will generally be processed on-line. Most banks require you to have a business bank account in order to apply.
>You will need the last 12 months payroll reports showing gross pay by employee, last 4 quarters Form 941, proof of employer payments to employee retirement accounts (401k, SEP IRA, SIMPLE IRA), and proof of payments to state and local taxing agencies (state unemployment tax returns).