Member Article

Now that the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) has been signed into, law, small businesses may be wondering what they can do to get a Paycheck Protection Program (“PPP”) loan into their bank accounts as soon as possible so they can pay employees.

In case you missed it, check out our bulletin here for a detailed description of the terms and conditions of and eligibility for these very favorable loans.

The first step for any small business will be to identify and contact a lender you want to work with that is qualified to participate in the PPP program. This could be the bank you already use for your business, or other community bank. There are thousands of banks that are currently qualified, and the Treasury Department is promising to deputize many more in the coming weeks. Your local Small Business Development Center will have a list of currently qualified lenders, and Waller can also assist you in finding a qualified PPP lender if you need further assistance.

Click here for our complete CARES Act coverage

As of this writing, we are still awaiting the Small Business Administration (“SBA”) to provide guidance and issue regulations governing the administration of the PPP. We do not believe lenders will process any applications until at least the initial guidance is provided, and the SBA is allowed up to 15 days after the passage of the CARES Act to issue regulations. Our understanding is these regulations may be issued by this coming Friday, April 3.

In the meantime, businesses who want to get a head start should begin to think about and gather the following materials:

• Organizational documents such as charter, certificate of formation, bylaws, and operating agreements
• W-9s
• Copies of drivers’ licenses for controlling owners
• Bookkeeping general ledger report on all entries that relate to payroll. This includes Salaries, Wages, Commissions, Vacation Pay, Parental Leave, Family Leave, Sick Leave, Allowance for Dismissal/Separation (Severance Agreement), Group Health Care Payments/Premiums, Retirement Benefits, State & Local Tax assessed on Compensation
• Recent IRS payroll tax filings (which includes number of employees)
• Reports detailing the trailing 12-month compensation for each employee

Click here to read more.