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Paycheck Protection Program

Posted on Thu, Apr 02, 2020

COVID-19

Update: April 1, 2020

At EHTC, we know accounting. We also know that these are times of uncertainty and there is an abundance of resources to everyone. We are updating our main COVID-19 website with pertinent information on COVID-19’s impact on your taxes, accounting and business as it becomes available to us. Please bookmark this page and check back for updates as new information becomes available.

Paycheck Protection Program

 

On March 31, 2020, the Department of Treasury released Payment Protection Program Application and official details.

What do you need to know about the Paycheck Protection Program (PPP)?

  • Small businesses and sole proprietorship are able to apply and receive loans starting April 3, 2020. Independent contractors and self-employed individuals are able to apply and receive loans starting April 10, 2020. Even though the program is open until June 30, 2020, we recommend contacting your lender and begin the application process immediately as there is a funding cap and lenders need time to process your loan.
  • Loan amounts can be as large as 2.5 times your average monthly payroll costs over the prior year. The amount is subject to a $10 million cap. 
  • The loan proceeds can be used for payroll costs and benefits, interest on mortgage payments, rent and utility costs.
  • In order for the loan or a portion of the loan to be forgiven, the loan proceeds must only be used on what is stated above. Also, the number of employees must be maintained and employee compensation must be maintained to a minimum of 75% of prior year compensation. Failure to maintain employee levels or maintain 75% compensation levels will result in a lower PPP Loan Forgiveness amount.

On March 31, 2020, Payment Protection Program highlights including common Questions and Answers click here.

On March 31, 2020 The Department of Treasury released official details on Payment Protection Program click here.

The Paycheck Protection Program application can be found here.

More information regarding COVID-19 for businesses and individuals can be found here.

 

Contact your EHTC Tax Advisor for more information and to determine what is best for you and your business. Please call us at (616) 575-3482 or email info@ehtc.com.

 

At EHTC, we are constantly reviewing the evolving situation and restrictions that develop throughout the process. In order to be as caution as possible, we have closed our office and asked Team Members to work remotely until further notice. Rest assured knowing that EHTC is fully committed to delivering the outstanding services you’ve come to expect from EHTC. Thank you for choosing EHTC as your strategic partner and do not hesitate to reach out to us with any concerns or questions. Please call us at (616) 575-3482 or email info@ehtc.com. Team members are available via email, phone and Microsoft Teams meetings.

Tags: COVID-19, Paycheck Protection Program