April 01, 2020 Update – CARES Act Loan Programs for Businesses
KEEPING YOU INFORMED…
The U.S. Small Business Administration has released guidance on how to apply for a loan under the Paycheck Protection Program as authorized by the CARES Act. You can find the guidance at https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp A copy of the loan application is attached hereto. You should be prepared to provide payroll expense verification documentation, including:
- IRS form 940 and 941
- NYS 45 for all 2019 quarters
- Payroll summary report for last 12 months period by employee
- 1099 forms
- Group health insurance cost for the last 12 months
- Employer retirement plan contributions for the last 12 months
Lenders will be begin accepting applications on Friday, April 3, 2020. You are encouraged to apply to a lender with whom you have an existing banking relationship. A comprehensive list of SBA approved lenders can be found at https://www.sba.gov/sites/default/files/files/resourceguide_3135.pdf (see pages 30-32). Additional lenders are likely to be approved by the SBA given the volume of applications anticipated.
We hope that you and your families are well and stay healthy. If you have questions about any of these loan programs, please contact Jeff Zankel, Steve Godsberg, Patricia Delaney or one of our other attorneys at the direct dial number or email address indicated on the contact information page attached to this memo.
THIS MEMORANDUM IS MEANT TO ASSIST IN THE GENERAL UNDERSTANDING OF THE CURRENT LAW. IT IS NOT TO BE REGARDED AS LEGAL ADVICE. THOSE WITH PARTICULAR QUESTIONS SHOULD SEEK THE ADVICE OF COUNSEL.
© Lamb & Barnosky, LLP 2020