We are all in this together. Though we must remain apart.
The effects of the COVID-19 outbreak are so far reaching it is impossible to know where this ends. AS we all try to navigate the changing landscape we, at Milikowsky Tax Law, would like to share the resources we have found to be most useful.
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The SBA PPP loan has been re-funded by Congress with $310 Billion more funding and banks and fintech companies such as Kabbage are accepting applications both online and, oddly, "in person".
If you are thinking of applying, reach out to a member of our team for a dedicated guide through the process.
Tips on the SBA PPP Loan:
Loans are disbursed through your bank, or, in the case of a small number of banks, to anyone who applies. Banks offering applications to non-members can be found here: https://thinksba.com/cv/
Businesses must have had employees before February 2020.
They must continue to have employees (not have laid off their workforce).
Businesses must have fewer than 500 employees. There are exceptions HERE
Businesses will have to prove that their economic need is due to the COVID-19 outbreak.
Determine Your Loan Amount
Take the average monthly salary (verified by submitting payroll records) X 12 (1 year).
Multiply that number by 2.5.
That number cannot exceed $10M
Salaries over $100K/year can only be counted up to the $100K amount.
Businesses MUST use 75% of their loan amount to cover payroll or the loan is no longer forgiven.
SBA PPP Estimated Loan Amount Calculator
Applying for the SBA PPP Loan
Application processes vary from bank to bank. All require that you verify your average payroll for the previous year by presenting payroll records. Additionally, you wi want to gather your expense reports, income reports, salary documentation for bonuses, severance, benefits, 401K contributions and you will need to present bank statements showing that you do, in fact need this loan. The PPP and the EIDL loans are hardship loans. If you take the loan and get audited later and the SBA, IRS or Bank discover that you did not experience a hardship and would have been fine without the loan, you can open yourself up to lack of loan forgiveness (at best) and potentially even to fraud charges.
Our team of experts is here to walk you through the loan process and help you ensure you remain compliant with the guidelines set forth for loan forgiveness.
Call us today for your personal guided loan application $500 (Currently $350 for the first 50 applicants).