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SBA No Longer Accepting PPP Applications - PPP Funds Exhausted
- As of 5/4/21, the SBA has stopped accepting PPP applications.
SBA Payroll Protection Program (PPP) - Forgiveness
*Second Draw PPP loan forgiveness applications will be accepted for processing starting June 1, 2021.
SBA Guidelines for Using Your PPP Funds
The SBA has made the following important changes to the PPP program.
- Extends the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who received PPP loans before June 5, 2020 may elect to use an eight-week (56-day) covered period.
- Lowers the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness.
- Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
- Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
- Increases to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
- Extends the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
Payroll Costs (per the Interim Final Rule)
Payroll Costs May Include:
- Compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation
- Cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips)
- Payment for vacation, parental, family, medical, or sick leave
- Allowance for separation or dismissal
- Payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement
- Payment of state and local taxes assessed on compensation of employees
- For an independent contractor or sole proprietor - wages, commissions, income, or net earnings from self-employment or similar compensation
Excluded Payroll Costs Include:
- Any compensation of an employee whose principal place of residence is outside of the United States
- The compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary
- Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees
- Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127)
Eligible Covered Expenses
- Interest (but not principal) on mortgage obligations incurred before Feb 15, 2020
- Rent payments on leases dated before Feb 15, 2020
- Certain utility costs for services that began before Feb 15, 2020
- Covered Operations Expenditures
- Covered Property Damage caused by public disturbance not covered by insurance
- Covered Supplier Costs
- Covered Worker Protection Expenditures
- PPP Loan Forgiveness Application, SBA Forms:
- 3508S - Intended for borrowers with PPP loans of $150,000 or less
- Total loans from all business affiliates cannot exceed $2 million.
- 3508EZ - Intended for borrowers who meet one of three criteria on the 3508EZ Instructions
- 3508 - Intended for borrowers who are not eligible to use the 3508S or 3508EZ forms
- Evidence of payroll costs
- Evidence of average full-time equivalent number of employees
- Evidence of restoring the full-time equivalent number of employees
- Evidence of covered utilities expenses (if applicable)
- Evidence of covered rent expenses (if applicable)
- Evidence of mortgage interest expenses (if applicable)
Examples of Documentation:
- Copy of payroll checks
- Payroll summary from a 3rd party (i.e. ADP, PayChex)
- Lease agreements with copies of rent payments
- Mortgage statements showing interest expense
- Documentation showing your attempt to rehire employees that declined to return
- Maintain a separate account for tracking purposes
- Maintain or increase your full-time equivalent employee count
- Document use of all funds
*All updates above are taken from the SBA and are provided to assist borrowers in preparing for the loan forgiveness application and should not be considered absolute or complete. Guidance provided by the SBA is subject to change. The best resource for the most updated information is Treasury.Gov/Cares.
To check the status of your 2021 Stimulus Check, visit the IRS website at: https://www.irs.gov/coronavirus/get-my-payment. Scroll down and click the "Get My Payment" button.
Child Tax Credits
For information on Advance Child Tax Credits, visit the IRS website at: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal.
Use the site to:
- Provide or update your bank account information
- See when you can expect to start receiving advance payments
- Check if you are enrolled to receive advance payments
- Unenroll to stop getting advance payments
- See a full schedule of advance payments
- See if you are eligible for the program
Additional Relief Resources
To further assist you, we have provided below some additional outside resources that may be helpful to you during this time.
BUSINESS RELIEF RESOURCES
- Small Business Administration (SBA) - Coronavirus (COVID-19) Small Business Guidance & Loan Resources
- South Florida Regional Planning Council - CARES Act Recovery Assistance
- Monroe County, Florida - CARES Act Small Business Assistance Program
MORTGAGE RELIEF RESOURCES