Every day, every hour, we are getting new information regarding the Coronavirus Aid, Relief, and Economic Securty (CARES) Act and the Paycheck Protection Program (PPP) Loan program.

Update 4/10/20 7:00pm Take a breath! Click here for the email blast

Update 4/10/20 Good news on Good Friday! Click here for the email blast

Update 4/9/20 late afternoon Click here for the email blast with new information

Update 4/9/20 #1 Click here for the email blast with new information

Update 4/8/20 Click here for the email blast with new information

Update 4/3/20 1:45pm Needless to say there have been many changes per hour for the past 3 days. We finally have the final document list per the SBA attached. We are no longer required like we were last night to get 3 years taxes nor affiliate taxes, and the whole list of much easier. The application is updated and official! I’m sorry for so many ups and downs and changes…

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I will do my best to update this post as I receive new information. The expert I am relying on for this information is Skip Canavan, Vice President & Business Development Officer for Centerstone SBA. Please contact him directly with any questions:

The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis and all loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:

• The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and Employee and compensation levels are maintained.

Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to the likely high subscriptions, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

When can I apply?

• Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
• Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Where can I apply? You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Visit www.sba.gov for a list of SBA lenders.

What do I need to apply? You will need to complete the PPA loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020.

Do I need to first look for other funds before applying to this program? No.

How long will this program last? Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.

How many loans can I take out under this program? Only one.

What can I use these loans for? You should use the proceeds from these loans on your:

• Payroll costs, including benefits
• Interest on mortgage obligations, incurred before February 15, 2020; Rent, under lease agreements in force before February 15, 2020; and Utilities, for which service began before February 15, 2020.

How much of my loan will be forgiven? You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utility payments over the 8 weeks after getting the loan.

You will also owe money if you do not maintain your staff and payroll.

• Number of Staff: your loan forgiveness will be reduced if you decrease your full-time employee headcount.
• Level of Payroll: your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019. 
• Re-Hiring: you have until June 30, 2020, to restore your full-time employment and salary levels for any changes made between February 15, 2020, and April 26, 2020.

How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.

What is my interest rate? 0.50% fixed-rate (this was previously up to 4%)

When do I need to start paying interest on my loan? All payments are deferred for 6 months; however, interest will continue to accrue over this period.

When is my loan due? In 2 years (previously 10 years)

Can I pay my loan earlier than 2 years? Yes. There are no prepayment penalties or fees.

Do I need to pledge any collateral for these loans? No. No collateral is required.

Do I need to personally guarantee this loan? No. There is no personal guarantee requirement.

What do I need to certify? As part of your application, you need to certify in good faith that:

• The current economic uncertainly makes the loan necessary to support your ongoing operations.
• The funds will be used to retain workers and maintain payroll or to make the mortgage, lease, and utility payments.
• You have not and will not receive another loan under this program.
• You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.

Linked below is the application and information regarding the SBA Payment Protection Program (PPP). This program goes live on Friday, April 3rd and will continue until the funds run out. In a nutshell, you can receive a loan… which can be forgiven… for 2.5X your average monthly payroll. The goal of Centerstone SBA is to approve your loan in 1-4 hours and fund in 72 hours. Depending on the volume the turnaround may vary. Please read the information sheets linked below which explain the program in detail. A couple of points to keep in mind:

• You can only apply for one PPP loan for each company you own so if you have several companies each one can receive a loan. But only one per company.
• The application needs to be filled out and signed IN FULL.
• They also need an application for each person who owns at least 20% of the business.
• Not everyone has the full corporation documents being asked for and the lender is aware of that so please supply what you have.

Please keep in mind that Centerstone and all other SBA lenders participating in this program will be processing several hundred of these loans per day so if you have questions please EMAIL: Skip Canavan at skip.canavan@teamcenterstone.com as that is much easier. Also, do not send documents a little at a time, please wait until you have a complete application package, this will allow Centerstone SBA to very quickly put your file together and submit for approval and funding.

See linked documents for the most updated clarification on application and requirements.

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