Paycheck Protection Program
The Paycheck Protection Program may help your small business cover up to eight weeks of payroll costs including benefits. These funds can also be used to pay interest on mortgages, rent, and utilities.
Information to Know
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:
- Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
- Interest on the mortgage obligation incurred in the ordinary course of business
- Rent on a leasing agreement
- Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
- For borrowers with tipped employees, additional wages paid to those employees
The loan forgiveness cannot exceed the principal.
When to Apply
Starting April 3, 2020, small businesses and sole proprietorship's can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
How to Apply
Fill out PPP Application (pdf fillable)
You will also need:
- 2019 W2's for all employees
- 2019 W3 payroll summary report
- 941 report
- YTD Payroll report from payroll software itemizing all employees
- Exclude excess over $100,000 for employees who are paid over $100,000.
- 12 month average Monthly Rent Expense
- 12 month average monthly mortgage interest expense
- 12 month average monthly utility expense
Return completed application and supporting documentation to The Murray Bank