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WELCOME

COVID-19 C.A.R.E.S. Act

The newly enacted CARES Act includes a $349 billion business loan program called the Paycheck Protection Program to offer relief measures to small businesses, primarily to keep employees on payroll and cover other critical expenses. 

COVID -19 Aid Relief & Economic Security Act

THE BASICS of the PPP under the C.A.R.E.S. Act

While federal regulations with specific execution instructions must be issued before loans can be made under the Program, we do know certain details about its provisions that we are sharing here. 


The Small Business Administration (SBA), the federal agency that administers the Program, still has issued final guidance and has begun to accept applications.  If you plan to submit an application, you can prepare for the application process by reading the Program elements below and gathering the appropriate documents to support your application.


Important elements of the Program:

  • Loans are now available. Funding allows through June 30, 2020
  • Independent contractors and self-employed individuals can apply beginning April 10, 2020.
  • Eligible businesses include small businesses, 501(c)(3) organizations, veterans’ groups or tribal businesses with 500 or fewer employees, or those that otherwise meet SBA size standards. This includes sole proprietors, independent contractors, and other self-employed individuals. Certain accommodation, lodging, and food services businesses with no more than 500 employees per physical location are also eligible.
  • Recipients can use the loans for certain payroll costs -- including salaries and commissions up to $100,000 per individual, regular paid leave, and group health-care benefits -- as well as certain mortgage, rent, and utility payments.
  • Businesses must have been in operation by February 15, 2020, to qualify.
  • Eligible businesses can receive loans up to 2.5 times their average monthly payroll, not to exceed $10 million.
  • Loans under the program are fully guaranteed by the U.S. government.
  • A recipient must certify that its business has been affected by COVID-19 and that it will use the funds to retain workers, maintain payroll and meet other debt obligations. Loans will also be subject to the qualification requirements, terms, and conditions of the Program.


As we work together to face these unprecedented challenges, please remember, we are here to help you apply for this funding or however we can.

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OUR PROCESS

1. Start and complete your Initial Loan Packet through our Contact Us link and Sign Now link.


2. After we take your application, our team will request and review your documents using proprietary scoring metrics.


3. Once pre-screened and loan amount determination, we will present your SBA app and collect any supporting documents to a SBA lender of your choice or one of our approved SBA Partners.


4. Once accepted, we’ll manage the loan process for you and conduct communication between you and the SBA lender until your funds are issued. 

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Documents To Have Prepared

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We will update the information here for you once that information is available regarding programs under the CARES Act, including the Paycheck Protection Program. 


In the meantime, gathering the following information and documentation now will better prepare you for submitting an application for this or other programs currently available or programs that may become available at a later date. 


Given the fact that these loans will be funded through SBA Lenders, and many of those lenders have credit policies that differ, we are asking you to gather as much information as you can so that any delays will be prevented


We will assist you in submitting the application so we will be able to hold this information for you once we are ready to submit your application.


Payroll Documents

  • Payroll documents (940s and 941s) for 2019 and 2020 to include payment on group health benefits, including premiums paid, commissions, and any retirement benefits 
  • Sole proprietorship will need to submit schedules from their 2019 tax return filed (or to be filed) showing income and expenses from the sole proprietorship.
  • Independent contractors will need to submit schedules from their 2019 tax return filed (or to be filed) as well as Form 1099-MISC from 2019.
  • All self-employed individuals will need to submit 2019 payroll tax filings reported to the Internal Revenue Service.

* 2020 Business Financials - if available

  • Feb 2020 YTD Profit and Loss Statement
  • Feb 29th YTD Balance Sheet
  • Business Tax Returns (Tax Year 2019) if available

2019 Business Financials

  • 2019 Profit and Loss Statement
  • 2019 Balance Sheet
  • Business Tax Returns (Tax Year 2018)

Get Your Application Going Now

407.243.9595

Download a Full PPC Loan Application, Agreement, & Documents

Contact Us and we can get this all done electronically!

SBA Table of Size Standards_Effective Aug 19, 2019 (pdf)

Download

Loan Checklist (docx)

Download

Paycheck-Protection-Program-Application-4-2-2020 (pdf)

Download

CARES Act Foregiveness Calulation Sheet (xlsx)

Download

Frequently Asked Questions & Answers

Eligible Businesses?

What types of non-profits are eligible?

What Are Affiliation Rules?

  •  Businesses and entities must have been in operation on February 15, 2020.
  • Small business concerns, as well as any business concern, a 501(c)(3) nonprofit organization, a 501(c)(19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
  • Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
  • Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived.
  • Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration, and company that receives funding through a Small Business Investment Company. 
  •  Gig economy workers who take on-call jobs provided by companies such as Uber, Lyft, TaskRabbit, and Instacart. 

What Are Affiliation Rules?

What types of non-profits are eligible?

What Are Affiliation Rules?

  •  Affiliation rules become important when SBA is deciding whether a business’s affiliations preclude them from being considered “small.” Generally, affiliation exists when one business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses. 


Click Below


What types of non-profits are eligible?

What types of non-profits are eligible?

What types of non-profits are eligible?

  •  In general, 501(c)(3) and 501(c)(19) non-profits with 500 employees or fewer as most nonprofit SBA size standards are based on revenue, not employee number. 


Click Below.


How is the loan size determined?

What costs are NOT eligible for payroll?

What types of non-profits are eligible?

  • Depending on your business’s situation, the loan size will be calculated in different ways (see below). The maximum loan size is always $10 million. 
  • If you were in business February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs during that time period.
  • If your business employs seasonal workers, you can opt to choose March 1, 2019 as your time period start date.
  • If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020.
  • If you took out an Economic Injury Disaster Loan (EIDL) between February 15, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum. 

What costs are eligible for payroll?

What costs are NOT eligible for payroll?

What costs are NOT eligible for payroll?

  •  Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation; 
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee. 

What costs are NOT eligible for payroll?

What costs are NOT eligible for payroll?

What costs are NOT eligible for payroll?

  • Employee/owner compensation over $100,000
  • Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
  • Compensation of employees whose principal place of residence is outside of the U.S. 
  • Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act 

If I am Self Employed can I take Unemployment and PPP Loan money?

As a business owner can I count Independent contractors toward payroll?

As a business owner can I count Independent contractors toward payroll?

 You cannot receive both Unemployment Benefits and a PPP loan at the same time. You should consider the payout of each program to determine which is the best fit for you. 

As a business owner can I count Independent contractors toward payroll?

As a business owner can I count Independent contractors toward payroll?

As a business owner can I count Independent contractors toward payroll?

Business owners may not count independent contractors toward their payroll when calculating the size of their PPP loans.


I Don’t Have Employees. Can I Still Qualify?

As a business owner can I count Independent contractors toward payroll?

I Don’t Have Employees. Can I Still Qualify?

  Yes you may. The CARES Act states: “…individuals who operate under a sole proprietorship or as an independent contractor and eligible self-employed individuals shall be eligible. Applicants who fall in this category will need to provide documentation such as “payroll tax filings reported to the Internal Revenue Service, Forms 1099–MISC, and income and expenses from the sole proprietorship, as determined by the (SBA) Administrator and the (Treasury) Secretary.”  

What are allowable uses of loan proceeds?

What are the loan term, interest rate, and fees?

What are the loan term, interest rate, and fees?

  • Payroll costs (as noted above)
  • Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums 
  • Employee salaries, commissions, or similar compensations (see exclusions above)
  • Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation)
  • Rent (including rent under a lease agreement)
  • Utilities
  • Interest on any other debt obligations that were incurred before the covered period 

What are the loan term, interest rate, and fees?

What are the loan term, interest rate, and fees?

What are the loan term, interest rate, and fees?

  0.50% fixed rate.  

 All payments are deferred for 6 months; however, interest will continue to accrue over this period. 

 The loan is due in 2 years and you can pay off the loan earlier than 2 years with no prepayment penalties or fees.  

For any amounts not forgiven, the maximum term is 10 years, the maximum interest rate is 4 percent, zero loan fees, zero prepayment fee (SBA will establish application fees caps for lenders that charge). 

How is the forgiveness amount calculated?

What are the loan term, interest rate, and fees?

How is the forgiveness amount calculated?

 Forgiveness on a covered loan is equal to the sum of the following payroll costs incurred during the covered 8 week period compared to the previous year or time period, proportionate to maintaining employees and wages (excluding compensation over $100,000): 

 Payroll costs plus any payment of interest on any covered mortgage obligation (not including any prepayment or payment of principal on a covered mortgage obligation) plus any payment on any covered rent obligation plus and any covered utility payment. 

 Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. 

Must Keep Employees on the Payroll—or Rehire Quickly 

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. 

How do I get forgiveness on my PPP loan?

How do I get forgiveness on my PPP loan?

How is the forgiveness amount calculated?

 You must apply through your lender for forgiveness on your loan. In this application, you must include:

  • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings.
  • Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.
  • Certification from a representative of your business or organization that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use. 

What happens after the forgiveness period?

How do I get forgiveness on my PPP loan?

What happens after the forgiveness period?

 Any loan amounts not forgiven are carried forward as an ongoing loan with max terms of 10 years, at a maximum interest rate of 4%. Principal and interest will continue to be deferred, for a total of 6 months to a year after disbursement of the loan. The clock does not start again. 

Can I get more than one PPP loan?

How do I get forgiveness on my PPP loan?

What happens after the forgiveness period?

 No, an entity is limited to one PPP loan. Each loan will be registered under a Taxpayer Identification Number at SBA to prevent multiple loans to the same entity. 

Are Farmers Eligible to Apply?

How Is is a Sole Proprietor Loan Amount figured

How Is is a Sole Proprietor Loan Amount figured

  Yes. As of April 3rd,  the SBA released the Paycheck Protection Program interim final rule. Based on  the analysis of the IFR, it has been confirmed that the IFR removes the industry-specific revenue thresholds. Agriculture enterprises that employ 500 or less people whose principal place of residence is in the United States are eligible, regardless of revenue levels. 

How Is is a Sole Proprietor Loan Amount figured

How Is is a Sole Proprietor Loan Amount figured

How Is is a Sole Proprietor Loan Amount figured

 Your monthly average payroll expense will be your annual net profit divided by 12. If your annual net profit is over $100,000, you may only claim up to $100,000 divided by 12. 

Where should I go to get a PPP loan from?

Can I get a PPP loan & use Emergency Economic Injury Grants and the Small Business Debt Relief?

How does the PPP loan coordinate with SBA’s existing loans?

We at ACS Executives will package the loan request for you and submit to your current and other SBA 7(a) lenders are eligible for PPP.

 The Department of Treasury will also be in charge of authorizing new lenders, including nonbank lenders, to help meet the needs of small business owners. 

How does the PPP loan coordinate with SBA’s existing loans?

Can I get a PPP loan & use Emergency Economic Injury Grants and the Small Business Debt Relief?

How does the PPP loan coordinate with SBA’s existing loans?

Borrowers may apply for PPP loans and other SBA financial assistance, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans, and also receive investment capital from Small Business Investment Corporations (SBICs). 


However, you cannot use your PPP loan for the same purpose as your other SBA loan(s). 

For example, if you use your PPP to cover payroll for the 8-week covered period, you cannot use a different SBA loan product for payroll for those same costs in that period, although you could use it for payroll not during that period or for different workers. 

Can I get a PPP loan & use Emergency Economic Injury Grants and the Small Business Debt Relief?

Can I get a PPP loan & use Emergency Economic Injury Grants and the Small Business Debt Relief?

Can I get a PPP loan & use Emergency Economic Injury Grants and the Small Business Debt Relief?

 Emergency Economic Injury Grant and Economic Injury Disaster Loan (EIDL) recipients and those who receive loan payment relief through the Small Business Debt Relief Program may apply for and take out a PPP loan as long as there is no duplication in the uses of funds. 

  

Do I need to first look for other funds before applying to this program?

Do I need to first look for other funds before applying to this program?

Can I get a PPP loan & use Emergency Economic Injury Grants and the Small Business Debt Relief?

 No. We are waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement). .

How many loans can I take out under this program?

Do I need to first look for other funds before applying to this program?

How many loans can I take out under this program?

 Only one.  

What counts as payroll costs?

Do I need to first look for other funds before applying to this program?

How many loans can I take out under this program?

Payroll costs include: 

 Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee); 

 Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit; 

 State and local taxes assessed on compensation; and 

 For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee. 

How large can my loan be?

How much of my loan will be forgiven?

How much of my loan will be forgiven?

 Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee. 

How much of my loan will be forgiven?

How much of my loan will be forgiven?

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. 
  • Re-Hiring: 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.  

How can I request loan forgiveness?

How much of my loan will be forgiven?

Do I need to pledge any collateral for these loans?

  You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days. 

Do I need to pledge any collateral for these loans?

Do I need to pledge any collateral for these loans?

Do I need to pledge any collateral for these loans?

 No. No collateral is required 

Do I need to personally guarantee this loan?

Do I need to pledge any collateral for these loans?

Do I need to personally guarantee this loan?

 No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.*** 

What do I need to certify?

Do I need to pledge any collateral for these loans?

Do I need to personally guarantee this loan?

As part of your application, you need to certify in good faith that: 

 Current economic uncertainty makes the loan necessary to support your ongoing operations.  The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.  You have not and will not receive another loan under this program.  You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.

  Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. 

 All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.  

 You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.