There is a lot of information on the CARES Act circulating across all media outlets in an attempt to figure out the benefits of loan programs, credits, net operating losses, etc. There are still many questions about the process of obtaining loans, the application process and the timing of receiving relief. Loans under this program are forgiven if you meet certain criteria. Our primary focus is on provisions of the CARES Act that will minimize the financial stress to all our clients and friends.
We encourage you to contact your bank and ask them to provide you an application for loans available under the CARES Act. Banks across America are hurrying to put procedures in place to help their neighbors and friends. Everyone we speak to is working diligently to provide as much information as possible to their customers and colleagues.
We sense an underlying theme with everyone. Gather financial information that will be necessary in obtaining a loan under the Paycheck Protection Program. There is no guidance on the information that will be required but we want you to be prepared.
Based on what we have seen and heard, we recommend you spend the time now to gather the following financial information:
- Income tax returns for 2018 and 2019
- Financial statements for 2018 and 2019
- For at least the previous 15 months (January 1, 2019 to March 31, 2020)
- Wage summary, by employee
- Unemployment taxes paid
- Health insurance benefits paid by employee and employer, on a monthly basis
- Union benefits paid, if any, on a monthly basis
- The uncertainty of the current economic conditions makes the loan necessary to support ongoing operations
- The funds will be used to retain workers and maintain payroll, make mortgage interest payments, pay rent and utility payments
- There is no other application pending for a loan for the same purpose and duplicate amounts have not been received.
- There have been no other loans received from February 15, 2020 until December 31, 2020 for the same purpose