Introducing the Paycheck Protection Program.

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 and the payroll calculation includes wages, health insurance, and employer retirement benefits.

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.

Once the firm receives funding or the loan is approved, we start an eight week period where the loan will be forgiven up to the amount of the amount spent on payroll, rent, utilities, and interest.

Watch my video below and I'll walk you through the sample loan application in the example below from SBA, but bear in mind the loans for PPP are coming from the actual banks - so when the banks open up applications later this week or very early next week, their requirements could be very different and the application could look different.

The links below are just an idea of what the applications will look like and the questions that you're going to have to answer when you apply for the program.

Do download our spreadsheet as this is my best conjecture of what the program's going to be based on as SBA hasn't given us absolute guidance on the accounting details and the banks haven't given us exact details but pulling these documents is probably a great place to start. 

If you have any questions, please contact us and we'd be glad to help. Thank you.