Helping Companies Navigate the Paycheck Protection Program ... · Example 2 If you have employees and/or independent contractors who made more than $100,000 annually in 2019: •

Helping Companies Navigate the

Paycheck Protection Program (PPP)

OUR WEBINAR WILL BEGIN SHORTLY

April 8, 2020 | 2:00 – 3:00pm

Disclaimer

To the best of our knowledge, this information was correct at the time of this webinar on April 8, 2020 at 2:00pm.

Given the fluid situation, and with rapidly changing new guidance issued daily, be aware that some of this information may no longer apply.

Please visit the U.S. Small Business Administration Paycheck Protection Program website at www.sba.gov for the latest updates to the program.

Helping Companies Navigate the Paycheck Protection

Program (PPP)

KRISTINA HUDSONExecutive DirectorOneRedmond

Hosted By

Supporting Partners


Program (PPP)

LINDA LAWSSupervisory Lender Relations SpecialistU.S. Small Business AdministrationSeattle District Office


Program (PPP)

JANIE SACCOFirst Vice President

U.S. Metro Bank

U.S. SBAPaycheck Protection Program

Loan Application

Application Review Presentation

We Will Be Reviewing the Following Items• Who is Eligible• Each Section of the Application Document• How to Calculate the Average Monthly Payroll• How to Determine the Number of Jobs• When An Addendum A is Needed and What to Include• When an Addendum B is Needed and What to Include• Responding to Questions 1 through 4• Responding to Questions 5, 6, and 7• The Certifications• Required Signatures• Miscellaneous Program Information• What Documents Are Needed by the Lender

Is Your Business Eligible

• Your business is eligible if you have 500 or fewer employees whose principal place of residence is in the United States

Or your business operates in a certain industry and meets the applicable SBA employee-based size standards for that industry. Please check with your business lender for eligibility under this standard.

• Your business was in operation on February 15, 2020

The Business Information Section

• Complete the Section With Your Company’s Information For trade names, you may go to www.dor.wa.gov, click on “Look Up a Business,” and enter your business name. Your legal entity name and trade names will populate

http://www.dor.wa.gov/

The Loan Calculation Section – Refer to your W-3

The Loan Calculation SectionHow to Calculate Average Monthly Payroll

Example 1• Refer to your 2019 W-3 document.• Take the number in Box 1 and divide it by the number of

months you were in operation in 2019. This is your Average Monthly Payroll. Multiply the Average Monthly Payroll by 2.5. This your loan amount.

• Assumes no employees are paid more than $100,000 annually, all employees reside in the United States, your business does not have an Economic Injury Disaster Loan (EIDL).

Example 2If you have employees and/or independent contractors who made more than $100,000 annually in 2019:

• Deduct from the W-3 Box 1 the amount over $100,000 paid to employees and/or independent contractors.

• Divide the net amount calculated above by the number of months your business was in operation to determine your Average Monthly Payroll.

• Multiply your Average Monthly Payroll by 2.5.

• This is your loan amount

Example 3If your business received an EIDL made between January 31, 2020 through the date of your application, you need to do the following:

• Using your calculated loan amount at 2.5 times Average Monthly Payroll as applicable for your business as the base

• Add the amount of your EIDL

• Subtract the amount of any “advance” under an EIDL COVID-19 (because it does not need to be repaid); it is generally the $10,000

• The result is your loan amount

Example 4If Your Business Began Operations in 2020:• Add up the total payroll for January 2020 and February 2020

• Divide the total by 2; the result is your Average Monthly Payroll

• Multiply your Average Monthly Payroll by 2.5;

• The result is your loan amount

• If you received an EIDL between January 31, 2020 up to April 3, 2020, please add it to your calculated Loan Amount above and deduct the EIDL advance; the result is your loan amount

How to Calculate the Number of Jobs

• If you have the same number of employees as you did in 2019, use the number noted in “c.” on your W-3.

• If you made staffing changes in 2020, write the number of employees you had on staff as of February 15, 2020.

Applicant Ownership SectionList all 20% or more owners: Name Title per Organization Documents Ownership Percentage Social Security Number or Personal Tax Identification Number Home Address

If there are more than two 20% owners, list all of the same information above on a separate page and include it with the application.

Questions 1 through 4Questions 1 through 4 apply to both the borrowing business and all of the 20% or more owners.

Mark them either “Yes” or “No”, as applicable.

For Question 3—if answered “Yes”, then create an Addendum A with each owner’s name, business name, title and ownership percentage.

For Question 4—if answered “Yes”, then create an Addendum B with SBA Disaster Loan Number and Loan Amount. The key word is “Received”; not “applied for”.

Questions 5 through 7

If Your Business Has More than One 20% Owner, duplicate page 1 of the application for each additional 20% or more owner.

Have each 20% or more owner answer each question and initial to confirm the response on the line provided.

If anyone answers “Yes” to questions 5 or 6, the loan is declined.If anyone answers “No” to question 7, the loan is declined.

Page 2 Representations, Authorizations, Certifications• Each 20% or more owner must initial by each statement

acknowledging the accuracy of each statement.

• The owner(s) of the business authorized by the company’s by-laws or operating agreement to borrow in the company’s name need to provide their signature, printed name, title and date on the form.

• Each 20% or more owner will provide their signature, name, title and date on the form. Add additional page 2s as needed to obtain all needed signatures.

Additional Information• The interest rate on the loan is 1.0%.• The loan has a two-year maturity.• The eligible borrower may receive only one PPP loan.• The PPP loans must be made on or before June 30, 2020• You will not have to make payments for six months following the date of

the loan (interest will accrue during that time)• At least 75% of the loan proceeds needs to be used for payroll expenses• Eligible use of proceeds: payroll costs, mortgage interest payments,

rent payments, utility payments, interest payments on other debt incurred before February 15, 2020

• Refinancing an EIDL loan made between January 31, 2020 up to April 3, 2020

Needed Documents• The completed PPP Application Form• 2019 W-3• 2019 W2s• Organization Documents:

For an LLC: For a Sub S or C Corporation:Certificate of Formation Certificate of IncorporationBusiness License Business LicenseArticles of Formation Articles of IncorporationOperating Agreement By-LawsInclude all Updates Include all Updates


Program (PPP)

ERIC SCROGGINSVice President & Bank ManagerBanner Bank

Q&A

Linda LawsSBA Seattle District Office

Janie SaccoU.S. Metro Bank

Eric ScrogginsBanner Bank

UPCOMING WEBINAR

Helping Independent Contracts & Gig Workers Navigate the Programs Under the CARES ACT

www.eastsiderecoveryhub.com

Working Washington Small Business Emergency Grants - $5 million

http://startup.choosewashingtonstate.com/covid-grants/

• Applicants should have been in business for at least one year.• Businesses with up to 10 full-time employees (FTEs) may apply for a one-time grant

of up to $10,000.• Funding is not meant to help launch a business, but to support existing businesses

who are specifically affected by the COVID-19 crisis and are vital members of their local community.

• Applicants are eligible to receive one Working Washington Grant award during the current budget cycle, which ends on 06/30/2021.

Helping Companies Navigate the

Paycheck Protection Program (PPP)

THANK YOU FOR PARTICIPATING

April 8, 2020 | 2:00 – 3:00pm