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Paycheck Protection Program Application

Exit forum ID Forum Discussion Paycheck Protection Program Application

This topic contains 6 replies, has 4 voices, and was last updated by   Keith Puri, DC April 7, 2020 at 9:23 pm.

Viewing 7 posts - 1 through 7 (of 7 total)
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  • #9171

    Keith Puri, DC
    Participant

      I just received the PPP loan application from someone I went to UBCC with and wanted to pass it along. Below are the loan terms and conditions.

      – Keith

      Loan Terms & Conditions

      Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
      · Maximum loan amount up to $10 million
      · Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)

      All loans under this program will have the following identical features:
      o Interest rate of 0.5%
      o Maturity of 2 years
      o First payment deferred for six months
      o 100% guarantee by SBA
      o No collateral
      o No personal guarantees
      o No borrower or lender fees payable to SBA

      https://home.treasury.gov/news/press-releases/sm961

      https://home.treasury.gov/cares
      This link will take you to the PPP information sheet for borrowers.

      #9174

      Keith Puri, DC
      Participant
        #9175

        Eric Lambert, DC
        Participant

          Thank you Keith for passing along all this information.

          #9178

          Brandon Cohen DC, CSCS
          Participant

            Thanks, Keith. I applied for the PPP earlier this week.

            #9180

            Keith Puri, DC
            Participant

              I just received this to fill out.

              PPP Application Addendum
              https://files.constantcontact.com/712350c1301/cf8da350-8715-4526-add8-016e66e90994.pdf

              #9181

              William Brady, DC
              Participant

                Thanks Keith. Please be thoughtful/careful with any loan program. Be sure to understand the details. My biggest concern with this program is the requirement that 75% of the business costs have to be for payroll. Unless you pay yourself through payroll, or have a multiple doctor staff, I would think it is very difficult to hit that large payroll threshold for loan forgiveness. Either way it is a very inexpensive loan, which is good. You do have to compare that with furloughing your employees and having them take unemployment. With the unemployment option you are not paying them to stay home, the government is.

                If you don’t meet the 75% threshold for loan forgiveness, then you are borrowing money to pay your employees to stay home. You will have 2 years to pay that back.

                I am not a loan expert. Please talk to your loan officer and see the documents for details. Just a perspective to discuss.

                #9182

                Keith Puri, DC
                Participant

                  Thanks, Dr. Brady. I appreciate the feedback. All our employees (including myself and business partner) are paid through payroll in our office, so we are hopeful this program will help cover a good portion of our payroll expenses. We will certainly pay strict attention to the loan distribution. Like you mentioned, with the number of applications expected to be submitted, it’s anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
                  Because of this, our accountant recommended we also apply for the Economic Injury Disaster Loan and request a loan advancement of up to a $10,000. According to the SBA, this advancement will not have to be repaid even if you are subsequently denied for an EIDL loan. You can apply for both, but you can’t “double-dip” and get funds from both loan programs for the same purpose. So, if we are approved for this advancement we intend to use it mainly for non-payroll costs.

                  https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

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