Just finished a very informative webinar on SBA PPP program from our partner Christopher Santomassimo and his team of lawyers in NJ.
Chris is a partner for our NJ CFO Forum group.
1 www.uschamber.com has a great checklist for PPP
2 Base period-prior 12 months of payroll (capped at 100k rate for individuals) plus healthcare costs (last three quarters and first quarter of 2020 for most of us assuming you want to file asap)
3 Maximum amount of the loan is 2.5 times the above monthly average payroll and healthcare costs.
3 Expenses incurred AND PAID for the 8 weeks after the loan origination date are forgive-able. Those expenses are payroll, rent, utilities, healthcare costs and certain interest expense.
4 Reduction of the forgiven amount is based on change in headcount. Website has the formula so visit www.uschamber.com
5 Anything not spent carries over as a loan at 4% interest.
6 Forms for PPP application are not available yet but their advice is to use the standard 7A SBA application. It is likely that these forms will be used-perhaps with some of the questions eliminated but those forms are available at sba.gov to get you started.
I hope this helps. Well worth visiting the Chamber’s website.
Their slides as well as the slides from Multi Funding and from Fox Rothschild CCI Consulting are available at their websites.
Suggestion-contact your payroll provider to provide the payroll info that you will need for the application. Likely to be last 9 months of 2019 and first 3 months of 2020.
I have been asked for feedback on “recommended” payroll providers.
Give me your comments-if you like your provider OR if you are looking for a better payroll provider. I will scrub your comments so tell me who provider is and your assessment. Maybe this is a topic for a future session since a bad payroll provider is not worth a few dollars you might save every month!