Coronavirus Aid, Relief, and Economic Security (CARES) Act
Many of our clients have had to temporarily close or severely limit the number of patients they can see due to COVID-19. PCIHIPAA is committed to spreading Good Karma to our Community and finding ways to help. The Paycheck Protection Program, (part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act) is a loan designed for businesses to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
We have summarized the 3 requirements of the Coronavirus Aid, Relief, and Economic Security (CARES) Act below:
- Calculate your loan amount:
This is equal to Total Payroll (includes benefits, commissions, etc.) for the period February 15, 2019 through June 30, 2019 divided by 4.5 multiplied by 2.5. For example, if your Total Payroll is $100,000 during that time, your loan amount is $55,556 ($100,000/4.5*2.5). In calculating Total Payroll the maximum monthly payroll for any employee is $8,333.33.
- Complete the Application (click here)
Applications can be submitted starting Friday, April 3rd. Get your application in as soon as possible because funds will run out. Here is a list of the Top 100 Active SBA Lenders. Find your lender today.
- Gather other supporting documents:
Have additional financial information ready.
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- 2019/2018/2017 Tax returns. If you have not filed 2019, then have a Monthly Profit and Loss statement.
- 2020 Profit and Loss.
- Details in calculating your loan amount (from Step 1 above).
- Loan forgiveness details. The SBA will forgive the portion of the loan that will be used for payroll costs incurred during the covered 8 week period compared to the previous year (excluding compensation over $100,000) plus any payment of interest on a mortgage obligation plus any payment on any rent and/or utilities.
You will need to apply for loan forgiveness through the lender and prove the details above. For any portion of the loan that is not forgiven, the rate will be under 4% for a maximum of 10 years.