Prepare Your Application for the Paycheck Protection Program
Basis 365 commitment to support our customers in building a better workplace is stronger than ever during this uncertain time.
As we've shared, in earlier posts, The U.S. government is responding to the economic hardship caused by COVID-19 and their impacts on small businesses and individuals.
Our goal is to provide you with accurate and up-to-date information and help you navigate this rapidly evolving legal and regulatory landscape. In a blog earlier this week, we shared qualification information, loan amounts, and uses.
When can I apply?
Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Starting April 10, 2020, independent contractors and self- employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
What do I need to apply?
You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020. Click HERE for the application.
How much of my loan will be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
You will also owe money if you do not maintain your staff and payroll.
Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount
Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
Rehiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
What is my interest rate?
0.50% fixed rate.
When do I need to start paying interest on my loan?
All payments are deferred for 6 months; however, interest will continue to accrue over this period.
When is my loan due?
In 2 years.
Helpful Links
There is a lot of information to digest and you may be wondering what options make sense for your business. Fortunately, there are advisors and resource partners available to help. These partners and the associations that represent them will receive additional funds through the CARES Act to better support small business owners during this time.
To find relevant resources for your business, review at page 9 of the CARES Act guide or visit the SBA website to find a resource partner in your area.
We’re in this together, and Basis 365 will continue to share relevant information as it becomes available in the coming weeks.
