New information has been released on Friday April 3, 2020, regarding the U.S. Small Business Administration (SBA) Coronavirus Relief options. Click here for a list of the funding options created by the CARES Act to help small businesses in addition to traditional SBA funding programs.
Unfortunately, the policies, procedures and application requirements have changed throughout the week, creating ongoing discussions between all the financial institutions and the federal government regarding the program and how to proceed. As a result, numerous banks delayed the application process. Some banks are taking applications; however, it is our understanding that applications have not been successfully submitted.
It is important to be in contact with your bank and be prepared with documentation supporting your payroll costs, health insurance costs and retirement benefits. Do not let the delay of gathering information delay the loan process.
There are two loan tiers, each of which require different processing procedures currently. Loan requests over $350,000 are currently being debated as to how banks should process and underwrite the requests, as well as what information will need to be submitted. A standard list of requirements needed to apply in any case are as follows:
- 2019 and 2020 year-to-date (YTD) payroll reports
- State income, payroll and unemployment insurance filings
- TAX ID/EIN and complete ownership information
- For sole proprietorships, independent contractors, and other self‐employed individuals, your 1099‐MISC forms
- For sole proprietorships, documentation of the income and expenses from the sole proprietorship. For healthcare costs, all health insurance premiums paid by the business owner under a group health plan.
- Your company retirement plan funding paid for by the company
For a copy of the new application please click here.
Contact EHTC by reaching out to your Tax Advisor, email email@example.com or leave a message at (616) 575-3482. The entire team at EHTC is here for you during these uncertain times. Thank you for choosing EHTC as your strategic partner.