Last Updated April 1, 2020 At 1:00 PM PDT
As a SolutionOne® client, you probably are eligible to apply for a loan under the Payroll Protection Program of the Federal Coronavirus Aid, Relief and Economic Securities Act (CARES). We urge you to explore the material below, talk with your other advisors, and make a decision regarding whether the loan program is right for your business. We stand ready to answer your questions and provide you with the needed information.
The CARES Act, includes the Paycheck Protection Program. This program authorizes up to $349 billion in forgivable loans to small businesses to pay employees during the COVID-19 crisis.
Loan amounts may be forgiven (without tax consequences) if loan proceeds are used to cover payroll costs, mortgage interest, rent and utility costs for the 8 week period after the loan is made, and employee and compensation levels are maintained. Due to the number of loans that are likely to be made, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
In summary, the amount of the loan is two and one-half times a company’s average monthly payroll costs. Payroll costs are said to include:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
- State and local taxes assessed on compensation; and
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
To get the process started, contact your Account Manager at 877-234-4420, option 3.
Our systems are in place to support any leave requirements under the CARES Act.