The PA Land Trust Association posted this important information on their News webpage for nonprofits and small businesses owners--
Time is of the essence, as nonprofits and business owners [500 or fewer employees] across the U.S. get ready to tap into the new federal Paycheck Protection Program (PPP). The team at RKL has been tracking program developments so that organizations can move quickly to take advantage of these unprecedented emergency forgivable loans.
What do you need to know?
On March 31, 2020, the U.S. Treasury issued more guidance on PPP and its loan terms:
-- Loan Forgiveness: PPP loans will be forgiven only if loan proceeds are used to cover eligible payroll costs, and most mortgage interest, rent and utility costs over the 8 week period after the loan is made and employee and compensation levels are maintained.
-- Interest Rate: Interest rate is set at 0.50% and the loan term is two years for all borrowers.
-- 6 Month Deferral: There is a six-month deferral on loan payments (interest still accrues during this period).
-- No Collateral: No collateral or personal guarantees are required.
Read the U.S. Treasury’s full information sheets for borrowers and lenders.
What should you be doing now?
The PPP application period for [nonprofits], small businesses and sole proprietorships started, April 3. Independent contractors and self-employed individuals can apply starting Friday, April 10.
Through discussions with banks in our marketplace, some are accepting applications but they will not be submitted to the SBA until the dates referenced above.
Review the PPP application and use this time to prepare the necessary documentation to support your application, which will likely include:
-- 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
-- Monthly Payroll Reports for 2019
-- Payroll report must show the following for the time period above: gross wages for each employee (including the officer(s) if paid W-2 wages); paid time off for each employee; vacation pay for each employee; family medical leave pay for each employee; and state and local taxes assessed on the employee’s compensation for each employee
-- 1099s for 2019 for independent contractors that would otherwise be an employee of your business (do NOT include 1099s for services)
-- Documentation showing total of all health insurance premiums paid by the Company Owner under a group health plan (include all employees and the company owners)
-- Document the sum of all retirement plan funding that was paid by the Company Owner (do not include funding that came from the employees out of their paycheck deferrals) – include all employees, including company owners, 401K plans, Simple IRA, SEP IRAs
-- Business entity documentation (e.g. Operating Agreement, Certificate of Organization, Bylaws, Articles of Incorporation)
-- 2017, 2018 and 2019 Business Tax Returns if applicable and 2019 internal financial statements if 2019 tax return is not filed
-- 2020 interim financial statements (balance sheet, income statement, accounts receivable aging and accounts payable aging)
-- Debt schedule for operating business
-- List of owners of the business if not included in tax return
-- Copy of Driver’s License for signers of business (this is likely for 20%+ owners)
[Where Do I Apply?
[You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
[Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating.
[Visit the Small Business Administration website for a list of SBA lenders.]
For more information on programs, initiatives and upcoming events, visit the PA Land Trust Association website, Click Here to sign up for regular updates from PLTA, Like them on Facebook, and Follow them on Twitter. Click Here to support their work.
Save the Date: PA Land Conservation Conference March 24-26 in Gettysburg.
Related Article:
[Posted: April 4, 2020] PA Environment Digest
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