Paycheck Protection Program (PPP) Update
April 3, 2020
New guidance was released Thursday, April 2, 2020, by SBA regarding PPP guidance. It is important to note that SBA clarified that the PPP program is indeed a first-come first-served program, so we highly encourage you to contact your bank to get your application process started as soon as possible. A link to the most recent application is available here.
The PPP allows you to request 2.5 times your monthly payroll costs to finance payroll, rent, utilities, mortgage payments and other debt obligations. Qualifying payroll costs include gross wages, employer benefits paid for group health coverage and retirement benefits, and state unemployment assessed on employee wages. No more than $100,000 of compensation annually may be used for any single employee.
A portion of the PPP loan used for payroll costs, interest, rent and utilities may qualify for forgiveness calculated during the 8-week period after loan origination. No more than 25% of forgiveness may be attributed to qualifying non-payroll costs.
Please contact HBE if we can be of any assistance.