Paycheck Protection Program FAQs for Small Businesses
Paycheck Protection Program FAQs for Small Businesses Where can I apply for the Paycheck Protection Program?
You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA’s lending programs, including numerous community banks. You do not have to visit any government institution to apply for the program. You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool. You can call your local Small Business Development Center or Women’s Business Center and they will provide free assistance and guide you to lenders. Who is eligible for the loan?
You are eligible for a loan if you are a small business that employs 500 employees or fewer, or if your business is in an industry that has an employee-based size standard through SBA that is higher than 500 employees. In addition, if you are a restaurant, hotel, or a business that falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and Food Services,” and each of your locations has 500 employees or fewer, you are eligible. Tribal businesses, 501(c)(19) veteran organizations, and 501(c)(3) nonprofits, including religious organizations, will be eligible for the program. Nonprofit organizations are subject to SBA’s affiliation standards. Independently owned franchises with under 500 employees, who are approved by SBA, are also eligible. Eligible franchises can be found through SBA’s Franchise Directory. I am an independent contractor or gig economy worker, am I eligible?
Yes. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program. What is the maximum amount I can borrow?
The amount any small business is eligible to borrow is 250 percent of their average monthly payroll expenses, up to a total of $10 million. This amount is intended to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations. This 8 week period may be applied to any time frame between February 15, 2020 and June 30, 2020. Seasonal business expenses will be measured using a 12-week period beginning February 15, 2019, or March 1, 2019, whichever the seasonal employer chooses. How can I use the money such that the loan will be forgiven?
The amount of principal that may be forgiven is equal to the sum of expenses for payroll, and existing interest payments on mortgages, rent payments, leases, and utility service agreements. Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sick or medical leave, and group health insurance premiums. If you would like
to use the Paycheck Protection Program for other business-related expenses, like inventory, you can, but that portion of the loan will not be forgiven. When is the loan forgiven?
The loan is forgiven at the end of the 8-week period after you take out the loan. Borrowers will work with lenders to verify covered expenses and the proper amount of forgiveness. What is the covered period of the loan?
The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. Borrowers can choose which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020. How much of my loan will be forgiven?
The purpose of the Paycheck Protection Program is to help you retain your employees, at their current base pay. If you keep all of your employees, the entirety of the loan will be forgiven. If you still lay off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If your total payroll expenses on workers making less than $100,000 annually decreases by more than 25 percent, loan forgiveness will be reduced by the same amount. If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30, 2020. Am I responsible for interest on the forgiven loan amount?
No, if the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate according to the loan terms agreed upon by you and the lender. What are the interest rate and terms for the loan amount that is not forgiven?
The terms of the loan not forgiven may differ on a case-by-case basis. However, the maximum terms of the loan feature a 10-year term with interest capped at 4 percent and a 100 percent loan guarantee by the SBA. You will not have to pay any fees on the loan, and collateral requirements and personal guarantees are waived. Loan payments will be deferred for at least six months and up to one year starting at the origination of the loan. When is the application deadline for the Paycheck Protection Program?
Applicants are eligible to apply for the PPP loan until June 30th, 2020. I took out a bridge loan through my state, am I eligible to apply for the Paycheck Protection Program?
Yes, you can take out a state bridge loan and are still be eligible for the PPP loan. If I have applied for, or received an Economic Injury Disaster Loan (EIDL) related to COVID-19 before the Paycheck Protection Program became available, will I be able to refinance into a PPP loan?
Yes. If you received an EIDL loan related to COVID-19 between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.
Today, the U.S. Small Business Administration, in consultation with the U.S Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.
The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released today will help small businesses seek forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans.
Click Here to view the application and instructions.
This form is not required, but is a convenience in clarifying the supporting documentation the state is required to submit to the U.S. Small Business Administration when requesting an Economic Injury Disaster Loan Declaration. This information in any other format would also be acceptable. For your convenience, this form may be filled our electronically or manually. Please submit completed forms to MaryThomas@countyofglenn.net or fax to (530) 934-6463
Amy Travis (OES), Bill Larsen (Genesis), Jesse Barrios (Genesis), Kyle Noderer (CalOES), Kristen Pidcock (APCD), Dan James (HCFD), Scott Lawson (GMC), Aimee Critser (BCPHD), Michelle Wetmore (FNRC), Dan Spiess (Nor-Cal EMS), Lori Finch (Westside), John McDermott (OFD), Christine Zoppi (HHSA), Mary Lou Nelson (HHSA-PH), Aaron Mathrole (BCEMS), Grinnell Norton (HHSA-PH), Carolyn Ceccon (HHSA-PH)
WELCOME & INTRODUCTIONS
Amy called the meeting to order.
Amy welcomed everyone.
Amy reported on old business
Ambulance Task Force: The task force is meeting regularly and trying to get a 12 hour ambulance in the county to reduce wait times.
After Action – February incidents: Amy is still working on the AAR. It should be finished by the end of the month. She is working with FEMA and CalOES to recover costs from the incidents.
Public Health: Public Health has a new EP Coordinator – Laura Medina. Her start date is July 1st.
Sheriff’s Office: LT Sean Arlin is retiring on July 7th.
Agencies reports are as follows:
Enloe Ambulance: The best use for a 12 hour ambulance would be 0800-2000 hours.
Westside Ambulance: They are experiencing a shortage of paramedics.
Nor-Cal EMS: Having a tabletop exercise at Nor-Cal EMS on the Infectious Disease Transportation Plan. They continue to work with Westside Ambulance on mobile devices. Funding has been approved for the project. Pre-hospital personnel needing CEs can take classes online at the Nor-Cal EMS website. Nor-Cal EMS is working with GMC on a level 4 trauma center project. With the County leaning toward contracting with SSV EMS, there is concern that the project will not be completed before the shift and Nor-Cal would propose postponing the change for 6 months. Grinnell assured that SSV would be able to take over the project and let members know that forces outside of the County are driving the change.
OES: Amy Travis is the new Deputy Director OES at the Sheriff’s Office. The SO and WPD are working closely on the transition of WPD to the SO. Amy is working on identifying space for an Emergency Operations Center (EOC) and is working with HHSA to use their new space in Orland during emergencies. She continues to work with FEMA and CalOES on the recovery application from the events in February. She will be completing the After Action Report for the Oro Spillway event shelter opening. She is working with Orland to do an active shooter exercise in the fall.
Orland Fire: Getting ready for fire season. They are having the repeater fixed and wants to know if there is any funding for repeater and dispatching.
HHSA: HHSA is working on county restructuring with the move of Public Guardian to HHSA. HHSA is leasing a new building in Orland with an expected move in November or December. HPP and PHEP workplans and budgets have been submitted to the State and are under review. The scenario for the Statewide Exercise is active shooter. The City of Orland will be doing a Full Scale active shooter exercise with the schools. It will be held on a Saturday so volunteers can participate. The focus will be on fire and rescue as well as EMS. HPP Coalition to join with Butte County to meet new HPP requirements for 2 acute care facilities in the coalition. This year HPP funding will remain with Glenn County, but could change in the future.
Glenn Medical Center: GMC has a new CNO – Tim Speak. Construction of the new hospital is close. The plans are back at OSHPOD for review after some minor changes to meet new requirements. May start construction as soon as next month. Hospital staff attended 1st Receiver Decon Training. The Platinum Club (seniors) will be meeting on the 21st. The presentation will be on emergency preparedness. Any seniors are welcome to attend. Updates are being done at the current facility to accommodate EMS and the new ambulance. More power is needed to keep systems running in the ambulance when not in use. GMC is starting to get into the community more by participating in community events.
Genesis Healthcare: Doing trainings and in service with staff on emergency response before doing drills. There is a concern about armed intruder/workplace violence. Have done some training, but need to exercise. Genesis has a cache of cots and bariatric equipment in storage. Genesis has a plan in place to address Norovirus if it occurs in the facility.
Far Northern Regional Center: FNRC is doing awareness training on fire season and summer heat. The have developed workgroups to continue planning on the challenges faced during the Oro spillway evacuations.
CUPA/Air Pollution Control: They have been working with Genesis and completed a HazMat inspection.
Upcoming trainings and Events
The following trainings and events are available:
Infectious Disease Transport Plan: Saturday, June 17, 2017, 0900-1100 @ Nor-Cal EMS, 930 Executive Way, Ste 150, Redding. This will be a tabletop exercise on the Region III Infectious Disease Transportation Plan. It will cover the protocol for treatment, transportation, destination determination, and notifications for confirmed or suspected EVD patients.
MCI Pre-Hospital and Control Facility: Tuesday, July 11, 2017, 0900-1200 or Wednesday, July 12, 2017, 1300-1600 @ Fairchild Medical Center, 444 Bruce Street, Yreka; Friday, July 21, 2017, 0900-1200 @ St. Elizabeth Hospital, 2550 Sister Mary Columba Dr., Red Bluff; Wednesday, August 23, 2017, 0900-1200 @ Butte County Public Health, 202 Mira Loma Dr., Oroville. This training is focused on control facility staff, receiving facility staff, pre-hospital personnel.
SitMap Training: Thursday, August 3, 2017, 0900-1500 @ S-SV EMS, 2775 Bechelli Ln., Redding. Training provides an overview of GIS and the potential uses of it in planning and response activities. This training is focused on emergency planners, public health, EMS, hospital staff, fire rescue, law enforcement, community partners.