Paycheck Protection Plan – What You Need to do Today

The following information was emailed to LSWG clients and friends on Thursday, April 2, 2020.

If you are planning to apply for the Paycheck Protection Program Loan, we urge you act now and get your documentation in order.

While the details are still being determined and some of the information provided below is subject to change, we are urging our clients and friends to be ready to apply for these loans as soon as they become available since the program is “subject to funding availability.”  (Small businesses and sole proprietorships can apply starting tomorrow, April 3, 2020; independent contractors and self-employed individuals can apply starting April 10, 2020.)

Need help pulling your documentation together?  Contact your LSWG client representative and let’s get things moving.  What do you need?  Here’s (what was referred to us as) a “shortlist” (additional information may be requested):

• Completed application.  Contact your SBA lender to ensure you have the most up-to-date application.
• Articles of Incorporation/Organization of each borrowing entity
• Bylaws/Operating Agreement of each borrowing entity
• All owners’ driver’s licenses
• Payroll expense verification documents to include:
  • IRS Forms 940 and 941
  • Payroll summary report for 2019 and year-to-date 2020 (to include a listing of compensation of an individual employee that is in excess of $100,000 annual salary) with corresponding bank statement
  • If a payroll summary report is not available, employee pay stubs as of February 15, 2020 (or corresponding period) with corresponding bank statement
  • Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.)
• Self-employed individuals, independent contractors and sole proprietorships — payroll tax filings for 2019 and year-to-date 2020, 1099-Miscellaneous forms and 2019 and year-to-date 2020 income and tax expense from the sole proprietorship
• Certification that all employees live within the United States.  If any do not, provide a detailed list with corresponding salaries of all employees outside the United States
• Trailing 12-month profit and loss statement (as of the date of application) for all applicants

Again, give us a call (301.662.9200) if we can help. For more information (who can apply, where to apply, and what the loans can be used for), click here for a Paycheck Protection Program (PPP) Information Sheet: Borrowers prepared by the U.S. Treasury Department.