COVID - 19 Disaster Relief Loan Program Updates 

PPP Forgiveness Applications:

First AND Second Draw PPP Forgiveness Application & Instructions for loans of $150,000 or less:

First AND Second Draw PPP Forgiveness Applications & Instructions for loans over $150,000:

  • Form number 3508EZ
    • Please reference Page 1 of the Instructions to determine if you are able to utilize the 3508EZ application.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


5/5/2021 Update:

PPP General Fund Exhausted

The Paycheck Protection Program’s general fund was reportedly exhausted Tuesday ahead of the program’s May 31 authorization.  Due to the funds being exhausted, and Profinium no longer being able to submit applications through the SBA portal, Profinium will no longer be accepting new First or Second Draw PPP Applications.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


4/29/2021 Update:

Restaurant Revitalization Funding Program

The U.S. Small Business Administration (SBA) is awarding funding through the Restaurant Revitalization Program to restaurants, bars, and other similar places of business that serve food or drink. The purpose of this funding is to provide support to eligible entities that suffered revenue losses related to the COVID-19 pandemic.

This program is a self-apply program, and you can apply through SBA-recognized Point of Sale (POS) vendors or directly via SBA in a forthcoming online application portal: https://restaurants.sba.gov. Participating POS providers include Square, Toast, Clover, NCR Corporation (Aloha). If you are working with Square or Toast, you do not need to register beforehand on the https://restaurants.sba.gov application portal.

Registration for the SBA application portal will begin on Friday, April 30, 2021, at 9 am ET. Applications will open on Monday, May 3, 2021, at noon ET.

Full details on the program can be found on the SBA's Restaurant Revialization Fund Program page.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


3/31/2021 Update:

With the passage of the PPP Extension Act of 2021, SBA is currently offering PPP loans until May 31, 2021.  Profinium will continue to accept applications for First and Second Draw loans until the completion of the PPP Loan program. 

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


3/4/2021 Update:

In response to President Biden's February 22 announcement, please see the below updated information.

  • Applications for First and Second Draw PPP Loans have been updated.
    • All updated applications can be found in the links at the top of this page.
  • Updated FAQs for Lenders and Borrowers participating in the Paycheck Protection Program (PPP)

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


2/24/2021 Update:

On Monday, February 22, President Biden announced the following changes to SBA's coronavirus relief programs to ensure equity:

Specifically, on Wednesday, February 24, 2021 at 9 am ET, SBA will establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. This will give lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31, 2021.

SBA also announced four additional changes to open the PPP to more underserved small businesses than ever before. While these changes are being implemented, SBA will work with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. And, SBA will strengthen its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. SBA will:

  • Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants;
  • Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal;
  • Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP; and
  • Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

A critical goal from Congress for the latest round of PPP was to reach small and low- and moderate-income (LMI) businesses who have not received the needed relief a forgivable PPP loan provides. Congress set a $15B set-aside for small and LMI first draw borrowers. With existing policies, the current round has only deployed $2.4B to small LMI borrowers, in part because a disproportionate amount of funding in both wealthy and LMI areas is going to firms with more than 20 employees. The less than 20 exclusivity period combined with the changes to expand access for sole proprietors, ITINs, returning citizens, and student loan debt will help us achieve Congressional goals.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


1.28.2021 Update:

First Draw PPP Loan Increases After Enactment of the Economic Aid Act

Profinium is now able to accept requests for First Draw PPP Loan Increases for eligible borrowers.

Please see the SBA Procedural Notice for more information, or do not hesitate to reach out as your banker is ready and willing to help you!


1.20.2021 Update:

Questions on 2nd Draw PPP Loans?

Please see the FAQs page for questions on how to calculate revenue reduction, achieving the maximum loan amount, and what documents you need to provide.

Note: requirements for revenue reduction proof: If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


UPDATED Forgiveness Applications for those with a PPP Loan UNDER $150,000: 

The Department of Treasury and SBA announced an updated application for PPP loan forgiveness for loans of $150,000 or less. These smaller loans now require less documentation and fewer calculations than the previous PPP forgiveness process. The form number is called 3508S and is a 1½ pages long application for loan forgiveness which is about as good as it gets. This application will be used for First AND Second Draw PPP loans of $150,000 or less.

We have included a link to application and instructions for forgiveness form number 3508S which you can use.

The directions provide some guidance on the documentation that you will need to provide to Profinium in order for our team to review and process the application for forgiveness.

Additional guidance that we can provide to you:

  • Please fill in all areas with the requested information. You will want to gather your original PPP loan documents to help complete these required entries. Please call Profinium with questions that you may have.
  • Make sure to review and initial each of the two certification questions.
  • The application will need to be signed and dated at the bottom of page one by the authorized representative.
  • Please note that there are optional demographic questions on page 2 that you may wish to answer.
  • Please refer to Page 4 of the Instructions for documents that need to be Maintained, but are NOT required to Submit.
  • Please also note the Records Retention Requirements on Page 4 of the Instructions.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


UPDATED Forgiveness Applications for those with a PPP Loan OVER $150,000: 

The Department of Treasury and SBA announced updated applications for PPP loan forgiveness for loans over $150,000.  These applications will be used for First AND Second Draw PPP loans over $150,000.

We have included a link to application and instructions for forgiveness form number 3508EZ which you can use.  Please reference Page 1 of the Instructions to determine if you are able to utilize the 3508EZ application.

If you are unable to utilize the 3508EZ application, we have included a link to application and instructions for forgiveness form number 3508.

The directions provide some guidance on the documentation that you will need to provide to Profinium in order for our team to review and process the application for forgiveness.

Additional guidance that we can provide to you:

  • Please fill in all areas with the requested information. You will want to gather your original PPP loan documents to help complete these required entries. Please call Profinium with questions that you may have.
  • Make sure to review and initial each of the two certification questions.
  • The application will need to be signed and dated at the bottom of page one by the authorized representative.
  • Please note that there are optional demographic questions on page 2 that you may wish to answer.
  • Please refer to the Instructions for documents that need to be Submitted AND/OR Maintained with the 3508EZ or 3508 applications.
  • Please also note the Records Retention Requirements on the last page of the Instructions.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


1.14.2021 Update: 

Note: there are 2 different applications this round.  One for first time Paycheck Protection Program applicants and a seperate application for those that applied for PPP with the first round in 2020. 

FIRST DRAW PPP APPLICANT DETAILS:  

This is the link to the Paycheck Protection Program Borrower Application Form Revised January 8, 2021: 

Paycheck Protection Program Borrower Application Form

This is to be used by those who did not apply or did not qualify for the First Round of the Paycheck Protection Program. 

List of documents recommended to have ready: 

  • Articles of incorporation/organization
  • By-laws/operating agreement
  • Copies of payroll tax reports filed with the IRS (including Forms 941, 944, state income and unemployment tax filing reports) for the entire year of 2019 and first quarter of 2020 (if available)
  • 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
  • Documentation of all retirement plan funding by the employer for the immediately preceding 12 months.
  • A detailed profit and loss statement for the year ended 2019 and YTD 2020
  • Completed application form

SECOND DRAW PPP APPLICANT DETAILS: 

Below is the Paycheck Protection Program Second Draw Borrower Application Form. This is to be used by those who obtained a PPP loan in the first round and experienced a 25% decline in revenue in 2020 as compared to the same quarter as 2019. 

Paycheck Protection Program Second Draw Borrower Application Form

List of documents recommended to have ready: 

  • Profit & Loss statement showing revenue requirements as stated above.
    • Note: requirements for revenue reduction proof: If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy.  
  • Completed application form
High level highlights of the second round of PPP loans to businesses are as follows;
  • Businesses that have already received PPP loans who have had severe revenue reduction will be able to apply for a second draw loan
  • Second draw loans will have the same forgiveness policies as the first
  • Second draw loans are limited to a maximum of $2 million
  • To be eligible for a second draw, businesses must:
    • Have fewer than 300 employees
    • Have or will use the full amount of the first loan
    • Have a reduction of gross receipts of at least 25% in any quarter of 2020 compared to the same quarter in 2019
    • Businesses in the Accommodation and Food Services (Defined as NAICS code 72) industry are eligible for a loan of 3.5 times average monthly payroll costs rather than 2.5 times

Please do not hesitate to reach out to your banker if you have any questions during this process. 


1.11.2021 Update: 

In regards to the new stimulus package, let’s review the details and next steps. Included in the $900 billion dollar package is $284 billion for another round of Paycheck Protection Loans to small businesses. Note, we are not able to start taking applications until SBA provides guidance and the new application forms, which is expected to take 10 days after the bill is signed into law by the President.

High level highlights of the second round of PPP loans to businesses are as follows;
  • Businesses that have already received PPP loans who have had severe revenue reduction will be able to apply for a second draw loan
  • Second draw loans will have the same forgiveness policies as the first
  • Second draw loans are limited to a maximum of $2 million
  • To be eligible for a second draw, businesses must:
  • Have fewer than 300 employees
  • Have or will use the full amount of the first loan
  • Have a reduction of gross receipts of at least 25% in any quarter of 2020 compared to the same quarter in 2019
  • Businesses in the Accommodation and Food Services (Defined as NAICS code 72) industry are eligible for a loan of 3.5 times average monthly payroll costs rather than 2.5 times
Eligible expenses are now deductible:
  • Under the original Paycheck Protection Program, expenses that were eligible for forgiveness were not deductible
  • These expenses will now be deductible as normal business expenses for both the original loan and any second draw loans
The following additional expenses were added as eligible expenses for forgiveness:
  • Payment for any software, cloud computing, and other human resources and accounting needs
  • Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance
  • Expenditures to a supplier, pursuant to a contract, purchase order, or order for goods made prior to taking out the loan, that are essential to the recipient’s operations
  • Personal protective equipment and investments made to comply with federal or State and local health and safety guidelines
Simplified loan forgiveness for loans less than $150,000:
  • An updated application must be released within 24 days of the date of enactment of the law
  • The application must not be more than one page long
Removed forgiveness reduction for EIDL Advance recipients:
  • Recipients of the EIDL Advance Grant of up to $10,000 were originally required to deduct that from the amount of the PPP loan eligible for forgiveness, this has now been waived
  • Borrowers who have already received forgiveness that deducted the amount received under an EIDL Advance will be made whole

Please review your financial circumstances to determine if you qualify. As we did with the first round, we will assist you through the application, approval and forgiveness process. For further detailed information do not hesitate to reach out for a conversation.

 


UPDATE for those with a PPP Loan UNDER $50,000: 

The Department of Treasury announced an updated application for PPP loan forgiveness for loans of $50,000 or less. These smaller loans now require less documentation and fewer calculations than the previous PPP forgiveness process. The form number is called 3508S and is a 1½ pages long application for loan forgiveness which is about as good as it gets, for now. We are still waiting for a ruling regarding automatic forgiveness of loans $150,000, or less.

We have included a link to application for forgiveness form number 3508S which you can use. We have a second link for the instructions for PPP loan forgiveness form 3508S.

The directions provide some guidance on the documentation that you will need to provide to Profinium in order for our team to review and process the application for forgiveness.

Additional guidance that we can provide to you:

  • Please fill in all areas with the requested information. You will want to gather your original PPP loan documents to help complete these required entries. Please call Profinium with questions that you may have.
  • Make sure to review and initial each of seven certification questions.
  • The application will need to be signed and dated at the bottom of page one by the authorized representative.
  • Please note that there are optional demographic questions on page 2 that you may wish to answer.
  • Please include copies of your payroll documents or other documentation such as canceled checks supporting the forgiveness application including detailed payroll records for the time period in question.
  • Please include documentation supporting the non-payroll costs for which you are requesting forgiveness.

If you have questions, do not hesitate to reach out as your banker is ready and willing to help you!


Commonly Asked Questions: 

"What dates do I need to remember?"

  • First, determine if you are using the 8 week or 24 week covered period. Then use the funds for eligible expenses before the end of the covered period.
  • The covered period is either 56 days or 168 days from the initial disbursement of the loan.
  • You have 10 months from the end of the covered period to apply for forgiveness.        

"I hear there may be automatic forgiveness of small SBA loans – is this true?"

  • If your PPP loan is <$150,000, you should be aware that legislation currently in Congress could substantially change the forgiveness process for PPP loans <$150,000.
  • Per the Wall Street Journal (9/30/2020) “… lawmakers in both the House and Senate have introduced legislation to streamline forgiveness for PPP loans of less than $150,000, granting blanket forgiveness to borrowers with a simple attestation that the funds were used in accordance with guidelines.”
  • While we don’t suggest you wait for legislation, if your loan amount is within this amount and you have ample time before the forgiveness application is due, there is not a rush to complete the current application process.
  • If your PPP loan amount exceeds $150,000, we suggest completing the forgiveness application following the covered period, and submit all required information to your lender when it is available.

The Paycheck Protection Program is, and has been, subject to change since its inception, so the content and guidance above is subject to ongoing changes. Your Profinium Team does its best to stay on top of the latest updates, to provide you with the best support we can.


PPP Loan Update: 

We know there are lots of questions of what to do next regarding your PPP Loan. Questions such as:

  • How do I go about submitting for forgiveness?
  • How does the process work?
  • When do I need to submit my forgiveness form?
  • Where do I need to go get the instructions and forms?
  • What do I need to include with my forms?

Let's take at look at what we know now and what we can start doing today to get ready for the forgiveness process.           

Covered Period

There are basically two options (time periods) for forgiveness of eligible expenses:

  • 8 week period beginning with the disbursement date of the loan.
  • 24 week period beginning with the disbursement date of the loan.   

Forgiveness Application

As you may know there are the two ways to apply for loan forgiveness through your lender:

  • PPP Loan Forgiveness Application Form 3508
  • PPP Loan Forgiveness Application Form 3508EZ

Note: Both forms are available on the SBA.gov/PPP Loan Program website including instructions (we highly encourage you to read through those instructions and get familiar with them). Most borrowers (including Schedule C and Schedule F borrowers) will be able to apply using the 3508 EZ form.           

Documentation Required (along with the application)

Tap/click here to review the document checklist. Review closely the required documents based on the type of application you submitted.

 

Some of these rulings certainly can be confusing, so please consult your tax accountant and your Profinium banker with questions and clarification regarding the loan forgiveness process and guidelines. We are here to assist you every step of the way toward a successful conclusion.

Disclaimer: This information is subject to current SBA regulations. We continue to monitor those developments and will update this information as additional guidance becomes available. The SBA and the Treasury have continued to post guidance and regulations. This information is a summary only and is provided as of its date. All clients are encouraged to read and review the Rules for more specifics. This message is intended to help assist you with Lender specific questions on PPP loans obtained under the CARES Act. 

 


7.28.2020 Paycheck Protection Program Update:

The SBA has set guidelines and published two types of loan forgiveness applications. Check in with your banker and tax accountants to verify which application fits your situation. 


7.17.2020 PPP Update:  

When we start accepting forgiveness applications we will update this page and reach out to PPP applicants with next steps. 


Paycheck Protection Program Statement from our CEO

July 7, 2020:

We wanted to alert you that the Small Business Administration and Treasury Department have announced they will publicly release certain information about PPP borrowers.

For loans of $150,000 or more, the data released includes business names, addresses, NAICS codes, ZIP codes, business type, demographic data, non-profit information, jobs supported, lender name, and dollar ranges for loan amounts. Dollar amounts are being disclosed in ranges of $150,000-$350,000, $350,000-$1 million, $1 million-$2 million, $2 million-$5 million, and $5 million-$10 million. Loans of $150,000 and up account for nearly three-quarters of the dollar volume of PPP loans.

For loans below $150,000, the agencies will not release business names but will report loan totals, aggregated by ZIP code, by industry, by business type, and by various demographic categories. The agencies have noted that PPP borrower applications disclosed that this information could become public.

Make no mistake: Profinium is not voluntarily releasing this information and is not calling for its publication. The decision to publish PPP borrower and loan information is a result of actions from Congress, the SBA and the Treasury Department, which oversee and administer the PPP, and are responsible for the program’s implementation, terms, and conditions.

We are proud to participate in the PPP and help customers like you navigate this challenging COVID-19 environment. If you have any questions or need further assistance, please don’t hesitate to reach out to us.

Sincerely,

Marques Doppler

Chief Executive Officer

Profinium, Inc.


 

To apply for a PPP loan here are the documented needed:

List of documents recommended to have ready: 

  • Articles of incorporation/organization
  • By-laws/operating agreement
  • Copies of payroll tax reports filed with the IRS (including Forms 941, 944, state income and unemployment tax filing reports) for the entire year of 2019 and first quarter of 2020 (if available)
  • 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
  • Documentation of all retirement plan funding by the employer for the immediately preceding 12 months.
  • A detailed profit and loss statement for the year ended 2019 and YTD 2020

For those of you with approved PPP applications, you can download our Next Steps Fact Sheet here.  

 

ADDITIONAL RESOURCE LINKS & LOAN OPPORTUNITIES 


4.25.2020 Update: 

The SBA will resume taking Paycheck Protection loan applications on Monday April 27th at 9:30am.

If you are planning to apply for a Paycheck Protection Loan and have yet to submit your application through Profinium, you should do so as soon as possible early next week. 

The U.S.Chamber of Commerce has updated their Coronavirus Emergency Loans Small Business Guide and Checklist. 

4.20.2020 Update: 

We are keeping a close eye on what is happening in Washington with both the Paycheck Protection Program under the CARES Act and the Agricultural Relief Program, Coronavirus Food Assistance Program. There will be a lot of moving parts happening in the days to follow.  If you have not done so already, one of the top things you can do now is to check in with your banker if you are planning to apply for either program.  


4.15.2020 Update: 

The U.S. Chamber has updated their emergency loan guide: Guide and Checklist for Small Businesses and Nonprofits

 ADDITIONAL RESOURCE LINKS: 

ADDITIONAL LOAN OPPORTUNITIES: 

 



4.7.2020 Update:  

Our clients are at the core of all we do.  When news rapidly rolled out about the SBA Pay-Check Protection Program, our team took immediate action to create the mechanism to get these funds to our clients.  We knew this was a first come first serve basis. So, we pulled out all the stops and did everything necessary to serve the clients who contacted us with their requests and completed applications.  At this time, we have reached our allocated limit of funding for the PPP loan program.  If things change within the program that would open up additional funds, we will contact you immediately.  In the meantime, we would be happy to refer your application to another top tier bank for processing if that would help you.

For those of you with approved PPP applications, you can download our Next Steps Fact Sheet here.  

Important PPP Application Dates:

  • *Note: Small businesses and sole proprietorships could apply for PPP loans beginning April 3, 2020. 
  • *Note: Independent contractors and self-employed individuals can apply beginning April 10, 2020.

ADDITIONAL RESOURCE LINKS: 

ADDITIONAL LOAN OPPORTUNITIES: 

 



4.6.2020 Update: 

We want to thank our banking team that worked tirelessly this past weekend to submit applications to the SBA. 

"Thank you for your committment to your teammates, our clients, our communities and our economy. You are doing amazing things! ~ Brian Weimer, Chief Banking Officer

 

Process for submitting PPP applications: 

  • Download our CARES Act - Payroll Protection Program Borrower Checklist here
  • Keep in communication with your banker if you are working on an application. 

 

Important PPP Application Dates:

  • *Note: Small businesses and sole proprietorships could apply for PPP loans beginning April 3, 2020. 
  • *Note: Independent contractors and self-employed individuals can apply beginning April 10, 2020.

 

ADDITIONAL RESOURCE LINKS: 

ADDITIONAL LOAN OPPORTUNITIES: 

 



4.4.2020 Update: 

SBA has opened the portal and we have a team diligently working to get your applications processed.  Stay tuned for notifications from your banker. 

Documents needed:

  • Paycheck Protection Program application: Download Here
  • Paycheck Protection Loan Estimator: Supplied by one of our bankers

List of documents that has been recommended to have ready: 

  • Articles of incorporation/organization
  • By-laws/operating agreement
  • Copies of payroll tax reports filed with the IRS (including Forms 941, 944, state income and unemployment tax filing reports) for the entire year of 2019 and first quarter of 2020 (if available)
  • 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
  • Documentation of all retirement plan funding by the employer for the immediately preceding 12 months.
  • A detailed profit and loss statement for the year ended 2019 and YTD 2020

*Note: Small businesses and sole proprietorships could apply for PPP loans beginning April 3, 2020. 

*Note: Independent contractors and self-employed individuals can apply beginning April 10, 2020.



4.3.2020 11:06am Update: 

Here is what we know as of this morning: 

  • SBA has not opened the portal yet and we have a team continually monitoring the site. 
  • The interest rate for the PPP Loan has been updated by the SBA to 1%.
  • SBA has updated their application. All the links below are updated with the new application
  • As you are working with our bankers they will have a calculator to help you determine how much to apply for. 
  • Reminder: this is a list of documents that has been recommended to have ready: 
    • Articles of incorporation/organization
    • By-laws/operating agreement
    • Copies of payroll tax reports filed with the IRS (including Forms 941, 944, state income and unemployment tax filing reports) for the entire year of 2019 and first quarter of 2020 (if available)
    • 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
    • Documentation of all retirement plan funding by the employer for the immediately preceding 12 months.
    • A detailed profit and loss statement for the year ended 2019 and YTD 2020

ADDITIONAL RESOURCE LINKS: 

ADDITIONAL LOAN OPPORTUNITIES: 



4.2.2020 Update: 

SBA Direct Loans: 

  • Emergency Economic Injury Grant:
    • $10,000 available within three days of submitting an Economic Injury Disaster Loan. 
  • Emergency Injury Disaster Loan:
    • Loan size and repayment terms determined by SBA once the application is submitted and approved.
    • Rate will be 3.75% fixed for up to 30 years.
    • Currently wait time is 4-6 weeks. Expect a longer back log as time rolls on. 

CARES Act Programs: 

  • PPP loan applications will begin being processed on April 3, 2020. However, you can send your completed application to your banker today. Application can be found here.
  • The U.S. Chamber of Commerce has put together a guide breaking down the CARES Act Loan Program. It includes details on how to calculate average monthly payroll costs.  You can access to the guide here. 
  • Some critical benefits of the Payment Protection Program (PPP): 
    • Cash to cover select business expenses (such as employee salaries and payroll support, rent or mortgage and utility payments, insurance premiums)
    • 6 months of deferred loan payments. 
    • Loan forgiveness (a portion, or possibly all, of you loan may be forgiven)
  • Additional key points to note for the PPP loan: 
    • Length of a PPP loan: 2 years
    • Interest rate on a PPP loan: 1% (SBA updated the rate on 4.3.2020) 
    • Maximum dollar amount of a PPP loan: 2.5x of your average total monthly payments for payroll costs of the business during the 1-year period before the loan was made.
    • Payroll costs include salary, wage, vacation, parental, family, medical or sick leave, severance, health care benefits, and local taxes. 
    • The last day to apply for a PPP loan: June 30, 2020
      • Please take into consideration the amount of time it will take to complete and process the application. 
      • There is also a limited amount of funds available under the CARES Act for PPP loans. 
  • Small Business Debt Relief Progam - Provides payment relief for up to 6 months of payments existing for 7A and 504 loans. More to come on this program. 

MN DEED Programs: 

  • Small Business Emergency Loans:
    • Application and process is through SMIF (Southern Minnesota Intiative Foundation)
    • Loans range from $2,500 - $35,000
    • Applies only to Minnesota businesses. 
    • Not available to non-profits.
    • Potentially interest-free and paid back over 5 years. 

Additional Resources: 

  • Abdo, Eick, and Meyers LLP has created some very helpful flowcharts to help businesses determine when & how to pay employees under the new paid leave programs in the Families First Coronacirus Response Act (FFRA).

 

We will continue to update this page as more information becomes available. 



4.1.2020 Update: 

Coronavirus Aid, Relief, and Economic Security Act (“CARES”) - Paycheck Protection Program

Details for Paycheck Protection Program can be found here
The Paycheck Protection Program (PPP) application for borrowers can be found here and sent to your banker when completed.
 
While the official document requirements are being finalized, it has been recommended to have the following documents ready:
  • Articles of incorporation/organization
  • By-laws/operating agreement
  • Copies of payroll tax reports filed with the IRS (including Forms 941, 944, state income and unemployment tax filing reports) for the entire year of 2019 and first quarter of 2020 (if available)
  • 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
  • Documentation of all retirement plan funding by the employer for the immediately preceding 12 months.
  • A detailed profit and loss statement for the year ended 2019 and YTD 2020

 

Small Business Emergency Loan (through DEED) 

  • Additional program details can be found here.
  • If you need immediate funding up to $10,000 you can apply directly through the Southern Minnesota Initiative Foundation. Details can be found here: Southern Minnesota Initiative Foundation
  • Offered through the Minnesota Department of Employment and Economic Development (DEED)
  • These loans are intended to be a bridge loan while a business applies for the federal programs above.
  • They are interest-free and partial forgiveness is available. 

 

Economic Injury Disaster Loans (through SBA)

We have noticed that the SBA is updating their application platform frequently so you may notice formatting changes if you complete your application in multiple sessions.

We will continue to update this page as information becomes available.