COVID-19 Resource

Now that the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) has been signed into, law, small businesses may be wondering what they can do to get a Paycheck Protection Program (“PPP”) loan into their bank accounts as soon as possible so they can pay employees.

The CARES Act loans will be facilitated through local community banks that are approved Small Business Administration (“SBA”) guaranteed lenders if they choose to participate. Do not wait to locate an SBA guaranteed lender. Your local Small Business Development Center will have a list of currently qualified lenders, and Doyle Law Firm can also assist you in finding a qualified PPP lender if you need further assistance.

Eligible small businesses and nonprofit organizations can apply for business interruption loans for expenses covering the period beginning Feb. 15, 2020, through June 30, 2020, under the Coronavirus Aid, Relief and Economic Security (CARES) Act, passed by Congress on March 27, 2020. Funds borrowed under the new Paycheck Protection Program (PPP) (part of section 7(a) of the Small Business Act) can be used to meet payrolls and other employee-related costs as well as debt, rent and utility payments. Use of these loans for payroll is limited to compensation of up to $100,000 per employee, independent contractor or sole proprietor.

Eligible borrowers include entities with not more than 500 employees (or higher as defined by the Small Business Administration (SBA), including small businesses, section 501(c)(3) nonprofits, section 501(c)(19) veteran’s organizations, and certain tribal business concerns. Eligible borrowers also include food service business concerns (NAICS 72) with multiple locations, but that employ not more than 500 persons per location. The SBA’s Table of size standards will help you assess the size of your business.

The official documentation requirements to apply for the CARES Act program will be provided by the SBA in the coming weeks. We strongly encourage you to reach out to your local community lender that is authorized to make SBA loans. The following documents constitute the current requirements for a SBA loan package.

1. Form W9 Request for Taxpayer Identification
   
2. Personal financial statement
   
3. SBA application
   
4. Form 4506-T Request for Transcript of Tax Return
   
5. 2019 Forms 941 for payments to employees
   
6. 2019 Forms 1099 for payments to independent contractors
   
7. 2019 Health Care Benefits invoices
   
8. 2019 Form 1098 for Mortgage Interest paid
   
9. 2019 Utility bills
   
10. 2019 interest on debt obligations incurred prior to 2/15/2020
    
11. Good Faith Certification –executed by Applicant/Borrower attesting to the
fact that 1-10 above are true and correct.

The Doyle Lawfirm and Island Financial Solutions can assist you with reviewing any of the foregoing, helping with the application process, determining eligibility, recommending lenders, and analyzing your existing loans to determine if any additional consents are needed. Please feel free to reach out if you have any questions.