Paycheck Protection Program - Business Oregon advises Food and Ag companies to act now.
Here’s the message from Business Oregon. If food and ag companies to want to participate, they will need to act now. With the new Stimulus 3.5 package just clearing the House and headed to the President for signature, NOW is the time for business owners to connect with their bank or credit union if they are looking at a Paycheck Protection Program forgivable loan. Here are some questions to be asking their financial institution: 1. Are they participating in the Paycheck Protection Program? 2. Are they up and ready to take applications? If not, when will they be? 3. What information will they need from you to process a PPP application? 4. When can you start applying? 5. How successful were they the last time in processing PPP applications? 6. Will they be accepting applications based on: a. Borrowing relationships? b. Banking relationships? c. Non-customers? The best and most current information will be posted on the SBA website. Please check the links below frequently as program requirements and guidelines are constantly evolving and some features of the programs may have changed. Paycheck Protection Program Economic Injury Disaster Loan If their bank or credit union is not participating, here are some other resources: Participating SBA PPP Lenders Here’s some PPP processors. I’m not endorsing any of them but heard they were accepting applications in round one: https://www.loanbuilder.com/ppp-loan-application www.fundingcircle.com www.biz2credit.com www.lendio.com BE PREPARED! Round 1 of the PPP program required the following certifications. This may change slightly for Round 2, however it would be wise to review the following and be prepared with the required information: t. What certifications need to be made? On the Paycheck Protection Program application, an authorized representative of the applicant must certify in good faith to all of the below: i. The applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099-MISC. ii. Current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant. iii. The funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; I understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold me legally liable such as for charges of fraud. As explained above, not more than 25 percent of loan proceeds may be used for non-payroll costs. iv. Documentation verifying the number of full-time equivalent employees on payroll as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight week period following this loan will be provided to the lender. v. Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. As explained above, not more than 25 percent of the forgiven amount may be for non-payroll costs. vi. During the period beginning on February 15, 2020 and ending on December 31, 2020, the applicant has not and will not receive another loan under this program. vii. I further certify that the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects… viii. I acknowledge that the lender will confirm the eligible loan amount using tax documents I have submitted. I affirm that these tax documents are identical to those submitted to the Internal Revenue Service. I also understand, acknowledge, and agree that the Lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.