If you are in the US and run a small business, the Payroll Protection Loan program went live on Friday April 3, 2020. The SBA and Treasury department clarified their guidance on April 7, 2020. If you haven't applied for the loan yet, the new guidance could generate a larger loan amount. This plan offers an incentive to keep your employees on board for eight weeks. It offers a very-low-interest loan to cover eight weeks of payroll, and the loan can be forgiven if you keep your people employed at the same salary through the eight weeks.
Updated April 7 guidance: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequenty-Asked-Questions.pdf
Info from Treasury Department: The CARES Act Provides Assistance to Small Businesses | U.S. Department of the Treasury
Quick Max Loan Calculator: https://www.mrexcel.com/download-center/2020/04/PayrollProtectionLoanCalculator.xlsx
Updated April 7 guidance: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequenty-Asked-Questions.pdf
Info from Treasury Department: The CARES Act Provides Assistance to Small Businesses | U.S. Department of the Treasury
Quick Max Loan Calculator: https://www.mrexcel.com/download-center/2020/04/PayrollProtectionLoanCalculator.xlsx
Transcript of the video:
Episode 2329 and a 1/2: The loan rules change for the Payroll Protection Loan On April 7th. Just an update on the calculator that I have out there.
The rules were clarified on April 7 2020.
There's a link here. It's simplified so gross salary up to $100,000 per person. If someone's over a hundred thousand just include the first hundred thousand.
+ health insurance + the employer portion of the 401k match. That all gets added up for your total payroll. They clarify that this could either be for 2019 or for the twelve months before your loan application. This gets your average monthly payroll times two and a half.
The big changes: they clarified that you no longer have to deduct FICA and federal withholding but you no longer get to include the 1099 amounts.
Per question 16 and 15 here.
The thing that had frustrated me is my bank had not let me finish applying. And the question is what if I already applied under the old rules? It says you can rely on the laws, rules and guidance available at the time of the relevant applications. So if you already applied, then that application is okay but if you haven't applied yet, then there's a good chance that your payroll will go up by a little bit because you don't have to deduct the FICA and federal withholding. The link to this new opportunity calculator is down in the YouTube description. Good luck everyone.
The rules were clarified on April 7 2020.
There's a link here. It's simplified so gross salary up to $100,000 per person. If someone's over a hundred thousand just include the first hundred thousand.
+ health insurance + the employer portion of the 401k match. That all gets added up for your total payroll. They clarify that this could either be for 2019 or for the twelve months before your loan application. This gets your average monthly payroll times two and a half.
The big changes: they clarified that you no longer have to deduct FICA and federal withholding but you no longer get to include the 1099 amounts.
Per question 16 and 15 here.
The thing that had frustrated me is my bank had not let me finish applying. And the question is what if I already applied under the old rules? It says you can rely on the laws, rules and guidance available at the time of the relevant applications. So if you already applied, then that application is okay but if you haven't applied yet, then there's a good chance that your payroll will go up by a little bit because you don't have to deduct the FICA and federal withholding. The link to this new opportunity calculator is down in the YouTube description. Good luck everyone.
