Paycheck Protection Program - forgivable loan for 2.5 months of payroll
Treasury PPP Guidance - April 2, 2020
PPP Information Sheet from Treasury.gov
Summary from US Chamber of Commerce
The loans are to be administered by local banks. The loan volume will be a tremendous strain on banks.
The loan amount is equal to 2.5 months of average monthly payroll over the last twelve months.
Amounts included in payroll
• Wages
• Health Insurance (Total bill less employee contribution)
• Employer Retirement Benefit Costs.
The loan will be forgiven when the funds are used to pay the following expenses.
• Wages
• Health Insurance (Total bill less employee contribution)
• Rent
• Utilities
• Interest
The level of forgiveness may also be a function of maintaining the same number of employees or full time equivalents.
Any forgiven loan amounts are NOT taxed as income.
Action items for today
1) Contact your bank and request details on applying for the loan.
2) Contact your accountant and ensure they are ready to assist with the loan application and have access to the needed payroll reports. We are already pulling documents for our clients.
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