Updated June 4, 2020
President Donald Trump signed a $484 billion bill Friday to aid employers and hospitals under stress from the coronavirus pandemic including $310 billion to replenish the Paycheck Protection Program (PPP) for small businesses.
As part of the prior $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act, the PPP had allocated nearly $350 billion to help small businesses keep workers on payroll during the pandemic. However, the fund reached its cap on April 16th. The new measure will replenish the fund.
A reminder PPP loan approval is on a first come, first serve basis. Because of this, make certain your loan application with an SBA approved bank is filed immediately. Many businesses who filed previously were left in limbo as they waited for additional funding for this program. Now that there is additional funding, banks are taking new applications.
As part of our commitment to be a valuable resource to your organization, we are sharing important information regarding the Paycheck Protection Program (“PPP”).
We believe that every company under 500 employees should apply for a PPP loan, and here is why:
1. Covered Payroll Expenses which include:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee).
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group healthcare benefits including insurance premiums; and payment of any retirement benefit.
- State and local taxes assessed on compensation.
2. When money is disbursed, first 8 weeks of spending may be forgiven
3. 10 months before first loan payment is due
4. 5 Year Maturity on the Loan
5. Fixed interest rate of 1.0% on the covered loan
Time Equipment Company Is the Essential Element for Managing Your PPP Loan
Beyond the First Step: In these unprecedented times, securing a Payroll Protection Program (PPP) loan is your first step to ensure the continuity and viability of your business – but it is just the first step.
Compliance: Time Equipment Company is an essential resource for assuring compliance with PPP loan requirements – we are a necessity for the stipulations regarding payroll.
Debt Forgiveness: Time Equipment has the perfect solutions for the meticulous time and payroll records required for compliance with PPP loan forgiveness regulations. Maintaining accurate records of staffing and payroll – producible upon request – is very important.
Reliable: For more than 90 years, you have relied on us for compliance with the Fair Labor Standards Act, Family Medical Leave Act, Affordable Care Act, and local requirements for mandatory sick time, overtime, and fair scheduling. You can continue to depend on Time Equipment Company now.
*This document simplifies complex Acts as it is understood by Time Equipment Company. It is not to be taken as legal advice. The regulations for this program are changing. For further information about the Paycheck Protection Program please visit www.sba.gov or www.coronavirus.gov