COMMITTED TO PROTECTING YOU AND OPEN TO SERVE YOU: BUTLER CARES COVID-19 UPDATE April 6, 2020
CARES Act Update
***YOU SHOULD TAKE URGENT ACTION***
With the CARES Act and the Payroll Protection Program open for applications you should have already submitted your application to your Commercial Banker or SBA lender. There have been problems with the roll out of the program. Wells Fargo had to cap their loan applications due to regulatory guidelines that only allowed them to accept $10 Billion in loans. Bank of America was only taking PPP applications from clients who they already had an existing banking relationship with and had already taken in loan applications for 10% of the total program allotment. Many other banks were swamped with applications through the first 3 days.
These loans are going to be issued on a First Come – First Serve Basis!!! – Don’t Miss Out if You Want to Submit an Application to your Lender.
If you are considering getting a Payroll Protection Program Loan to help with payroll, rent/mortgage, utilities and interest below is a Worksheet that will help you determine if this program is a good fit for your practice and how much of the loan is eligible to be forgiven.
The reason it is critical that you apply now is that on April 10, 2020 the program will be opened to Independent Contractors and there will be a second wave of application submissions into the system.
SMALL BUSINESS PAYCHECK PROTECTION PROGRAM – Overview
PPP Information Sheet that explains the programs guidelines.
Payroll Protection Application that most lenders are using (Check with your Lender or Commercial Banker)
MN SBA Approved Lenders – Check with your current Banker or Lender to see if they are accepting PPP applications.
PPP – Overview
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
How to Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.
This program can be a lifeline for you business over the next 8-10 weeks. With the loss or revenue due to the Stay at Home order issued by Governor Walz Payroll Protection Program should be something almost every business should considering.
You should have most of the documentation needed from your last Workers Compensation Audit or it should be easily generated from your payroll provider.
Please let us know if we can help you in any way. Our biggest encouragement is to look to get your loan application submitted before April 10th!
Be well, healthy and safe!
BELOW ARE RESOURCES TO HELP YOU IN THESE UNPRECEDENTED TIMES:
PLEASE CONTACT US OR YOUR INSURANCE CARRIER –
THEY MAY HAVE FLEXIBLE BILLING OPTIONS IF YOU ARE EXPERIENCING A HARDSHIP.
WE CAN ASSIST YOU!!!
Your Butler & Associates Insurance team members are working remotely to serve and protect you.
Here’s 5 easy ways to reach the team at Butler & Associates Insurance Agency anytime:
Your experience with us may be a little different during this time of uncertainty and your patience is greatly appreciated. Although our physical office is closed, our team remains 100% committed to serving you.
We appreciate this and every opportunity to serve you!
Bill Butler and the whole Butler & Associates Insurance Team