You are here

Important Paycheck Protection Program (PPP) Guidelines and Information

On Tuesday, March 31, the U.S. Department of the Treasury released additional information regarding the Paycheck Protection Program (PPP) including the application. All businesses—including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors—with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries. Click here for additional detail.
 

We encourage all such organizations to contact an SBA lender bank or credit union to discuss the program and potentially commence the application process. Please call your Wolf engagement team leader should you have any questions regarding this program.
 

PPP: Brief Outline and Further Information  

This loan has a maturity of two years and an interest rate of 1.0%. Forgiveness is based on the employer maintaining, or quickly rehiring, employees, and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Links to the SBA information are as follows:

An important starting point of the application is identifying “payroll costs” which is defined in the act as:

“(I) means—

  • “(aa) the sum of payments of any compensation with respect to employees that is a—
    • “(AA) salary, wage, commission, or similar compensation;
    • “(BB) payment of cash tip or equivalent;
    • “(CC) payment for vacation, parental, family, medical, or sick leave;
    • “(DD) allowance for dismissal or separation;
    • “(EE) payment required for the provisions of group health care benefits, including insurance premiums;
    • “(FF) payment of any retirement benefit; or
    • “(GG) payment of State or local tax assessed on the compensation of employees; and“
  • (bb) the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in 1 year, as prorated for the covered period

“(II) shall not include—

  • “(aa) the compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the covered period;
  • “(bb) taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period;  (ie; FICA, Medicare, Railroad retirement, federal employee withholdings)
  • “(cc) any compensation of an employee whose principal place of residence is outside of the United States;
  • “(dd) qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–127); or
  • “(ee) qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act (Public Law 116–127)

Please call your Wolf engagement team leader should you have any questions regarding this program. Visit Wolf’s COVID-19 Resource Center for other up-to-date, educational information.