Last week, we covered the emerging details from the CARES Act that expanded on the Small Business Administration’s Disaster Loan program with the Payroll Protection Program — which essentially turned parts of a loan into a grant, aka FREE MONEY, to help cover payroll, rent and utilities, if you retained staff .
ALL THESE PROGRAMS ARE FIRST COME, FIRST SERVE, SO DON’T WAIT
The program was set to start on Friday, April 3 and final guidance on the program was issues later that day.
Here’s what we know now and links to get your PPP form and documentation together, based on feedback from one of the top SBA lenders in the state of Nebraska.
The status of the Economic Injury Disaster Loan Advance (formerly known as the Economic Injury Disaster Loan Grant)
After the SBA’s initial online loan application system crashed, it was replaced with an expedited form that offered a decision within 3 days and “advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.”
It’s officially the start of Day 5 and there are no public reports we could find of any businesses receiving these funds.
Unfortunately, there is no way to check on the status of your application online, so reports are the SBA is advising customers to call in 10-14 days after the date of their application. You can reach the SBA Disaster Customer Service Center at (800) 659-2955. Short answer is to sit tight.
Still worth applying here: https://covid19relief.sba.gov/#/
You can still apply for the Payroll Protection Program and if you’re successful with both applications, the EIDL loan will be rolled into the PPP program.
Updated Payroll Protection Program Information
This application must be filed with a bank or credit union that functions as an SBA Lender. If you can, work with one of the top lenders in your area, here’s the Nebraska list but we’re hearing good reports from businesses using other banks not on this list. Here’s what you need to be ready:
- Fill out the new PPP form from the SBA. If you haven’t heard back on your EIDL application (which we think is just about everyone), stick with the formula of 2.5 x monthly payroll).
- Get all of federal and state employment tax records together, including you’re 940 (federal unemployment) and 941 (federal withholding) for every quarter in 2019 and 2020 (the first quarter of 2020 might not be available) and their state equivalents. Whomever handles your payroll taxes should have this.
- Get payroll reports for each pay period in 2019 and 2020. We opted for a fairly detailed report showing payroll breakdowns by each employee.
- Get benefits reports together, at least for the year, the more detailed possibly the better.
Reports are that the system banks use to file these — E-Tran — is crashing, so like the EIDL applications, only thing to do is sit tight.
How to Find PPP Payroll Documents in Quickbooks Online
If your business is using Quickbooks Online Enhanced Payroll Service, here’s how to quickly find or generate the reports you need:
• Federal and state employment tax records. Click on Taxes–>Payroll Taxes in your Dashboard, then select the Forms tab. Click on 2019 to see all of your federal and state payroll tax forms. Start downloading.
• Reports showing each payroll period in 2019 and 2020. Go to Reports–>Payroll (scroll way down, past Employees)–>Payroll Summary by Employee Report. Change the dates for each payday and download this report as an Excel document.