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  • In support of the effort to combat the current pandemic, The Mesa Chamber of Commerce has made some changes to our operation.

    Please review those here.

  • Payroll Protection Program Q&A

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    Contact Bob Nelson, Director of Communications, with additional questions at bnelson@mesachamber.com or visit our Small Business Blog

    Q: How do the verify the direct deposit account the $ is going to? 
    A: The account will be whichever was listed in your most recent tax filing; in other words, the most recent account the IRS has on file.

    Q: Do we go to the SBA website or to our regular bank? 
    A: Go to the SBA’s website – sba.gov/disaster – to apply for the EIDL loan and the Treasury’s website – treasury.gov/cares – for the PPP application. The PPP loan application will need to be submitted directly to your lender. PPP loans would go to your bank, as long as they are approved to offer SBA 7a loans. Yes, SBA 7a approved lenders and most every FDIC insured lender are participating.

    Q: What about a small business who had no employees last year but added one or two this year that they needed to temporarily layoff? 
    A: If you were not in business last year, you can still apply for a PPP loan.  However, to be eligible you need to have been in operation on February 15, 2020.  The loan size will be determined by 2.5 x your average monthly payroll costs between January 1, 2020 and February 29, 2020. 

    Q: Has there been any discussion on what happens if the money for the Paycheck Protection Program runs out? 
    A: Some recently. Although Congress did not originally anticipate the program running out of money, it is possible. There’s bipartisan consensus that more money would be made available if that were to happen.

    Q: Are the health insurance premiums less offset of what EE contributes, or just what is invoiced by provider?  
    A: Whatever cost the employer pays to provide health care coverage for their employees should be included in the average monthly payroll calculation.

    Q: What is considered a “full-time equivalent employee” outside of employees working 40 hours? 
    A: 30 hours per week.

    Q: Can you apply for the EIDL loan and the PPP loan? 
    A: I believe so, although the language in final guidance is somewhat unclear.  See answer below.
    A: The guidance provided this morning to us (Alerus is an SBA Preferred lender) is that you cannot be eligible for both EIDL and PPP; anyone who applied prior to 4/1 for EIDL can be eligible for both, but anyone who applies today or later cannot take advantage of PPP.  The final guidance issued on April 2 does not explicitly prohibit an employer from applying for both, but most of the sections dealing with EIDL and PPP interaction do reference April 3, with the inference that this could be a possible demarcation date, after which EIDL recipients might be barred from applying for a PPP.  Unfortunately, the language is not very clear here.

    Q: For the EIDL if you have other credit resources do you not qualify for it?  
    A: No, “outside credit” requirements have been waived, so access to other sources of credit does not impact eligibility for EIDL.

    Q: If you get the 10k emergency grant, can you use that for anything, and does that make it so you can't get the PPP and EDIL loans?  
    A: The $10,000 grant can be used to cover payroll, rent, increased costs due to supply chain disruption, and obligations unable to be met due to lost revenue.  Receiving the grant does not impact your eligibility for either the PPP or EIDL; however, if you receive a PPP $10,000 will be deducted from the forgivable amount of the loan.

    Q: Is there a published form for the EIDL loan? 
    A: Yes, it can be found at sba.gov/disaster.

    Q: As part of the PPP what defines, utilities?  
    A: Also, are unemployment taxes paid to the State able to be included in the amount for the average payroll?  Definition of “covered utilities” is not specified in the statute, though assumption would be water, electricity, gas, garbage service, etc.  Yes, UI taxes are included in payroll costs.

    Q: For the PPP loan, do you have to roll some of it into a loan or can it all be a grant that is forgiven?  
    A: PPP is a loan that can be forgiven if used for forgivable purposes (payroll, rent, mortgage, utilities) so long as employment and wage levels are maintained or reinstated by June 30, 2020.

    Q: Can part of the EIDL loan be forgiven? 
    A: Yes, the $10,000 cash advance grant.

    Q: Prepay penalty still apply for this SBA PPP loan?  
    A: All payments are deferred for at least six months; the idea behind the loan is that most of the loan amount, if not all, will be forgiven.

    Q: For self employed who do not do payroll but rather the net income as their income is that considered the payroll for self employed?  
    A: Yes.

    Q: Can you furlough employees that have no duties due to the COVID virus and still receive the PPP loan and if so what percentage can you furlough?  
    A: Yes, however you must reinstate their wages before June 30, 2020 in order to receive loan forgiveness.

    Q: For the self employed can they use their 2019 revenue even if the taxes have not been filed yet?  
    A: If taxes for 2019 have not yet been filed, 2018 tax returns will be used to calculate PPP loan eligibility amount.

    Q: This may be repetitive but to confirm the PPP qualifications, for profit LLCs or Corps will not be eligible?
    A: I was confused when Jennings first spoke on that.  All small businesses with fewer than 500 employees, including LLCs and Corps, are eligible.

    Q: Employer matching on 401ks... is that part of payroll costs (i.e., retirement benefits)?  
    A: Yes, payment for the provision of retirement is included as an eligible payroll cost.

    Additional guidance for completion of Paycheck Protection Program applications FAQ

    To check the status of an EIDL loan application or advance, please call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov.
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