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Emergency Loans Small Business Guide & Checklist
Currently, banks are looking for additional guidance from the U.S. Treasury and waiting for the final guidelines and details from the Small Business Administration. Right now, the US Treasury and SBA have everyone in a quagmire. As a result, some banks are “taking” applications but can’t really process them, other banks, like PNC, are holding off until they know the details.
Hopefully, this delay will provide the time necessary for banks to set up access to an online portal when for applicants to officially submit their PPP request. Stayed tuned!
Please note that payroll cost includes Employer paid unemployment tax on employee wages. Make sure you included copies of your 2019 State unemployment quarterly tax forms to support this additional payroll cost to be included in the PPP loan calculation.
Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the following information:
Yes, you can apply for both, but you may only receive proceeds from one loan to use for eligible payroll and related expenses. If you used proceeds from a COVID-19 EIDL to pay payroll and related expenses, you may refinance that EIDL loan with a Paycheck Protection Program loan.
It’s critical for you to weigh all options available to you to ensure the best financial decision for your business. To apply for an EIDL, you must apply directly through the Small Business Administration. The PPP is applied for through your bank.
Under the CARES Act funding was allocated to help small businesses maintain their workforce by providing forgivable loans used to pay for payroll, employee benefits, rent, utilities, and mortgage interest.