03 Apr Confused about the Payroll Protection Program and the SBA Loans… You are NOT Alone!…
Confused about the Payroll Protection Program and the SBA Loans… You are NOT Alone!…
The Coronavirus Aid, Relief, and Economic Security Act or the CARES Act (the “Act”) , previously discussed in this blog provides for the Payroll Protection Program (“PPP”) as well as disaster loans. The actual Act is very comprehensive (over 300 pages) and difficult to understand. This author’s banker at Synovus in Clearwater, Florida, David W. Seabrooks, (1.727.451.3019), forwarded some helpful information on the PPP. Also available online is a chart on the difference with the PPP and the SBA Loans.
In this ever-changing environment, yesterday (April 2), the SBA also issued an Interim Final Rule which implements the PPP under the Act.
ADVICE: Contact your banker to determine whether and how you can have access to the PPP. Also go to the SBA website to find out information regarding the disaster loans.
WORD OF THE WEEK: “Payroll Costs” for purposes of the PPP include compensation paid to employees (residence in US) as salary, wages, commissions or similar compensation, tips, payments for vacation, parental, family , medical or sick leave, employee benefits, including group health care coverage, insurance premiums, and retirement benefits and state and local taxes assessed on compensation of employees. Expressly EXCLUDED are compensation for an employee whose residence is not in the US, compensation of an individual employee above $100,0000, federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, income taxes required to be withheld from employees; and certain qualified sick and family leave wages.
GENEROSITY IS A KEY TO HAPPINESS…REACH OUT AND HELP SOMEONE TODAY! 😎