PPP Update as of April 3, 2020
Dear Clients and Friends,
We trust that everyone is healthy and remains so.
As you may know, today is the first day that Companies may apply through a recognized SBA lender for the Paycheck Protection Program loans. It is important to note that each bank may have its own requirements specific to their process. The basic underwriting requirements put out by Treasury are for the lender to confirm that an applicant was in business on February 15th and to verify the documentation used to calculate the amount of the loan. This documentation relates to payroll costs. We have heard that banks are requesting other information including copies of tax returns etc. They have the right to do this and we urge you to be as compliant as possible so that your application is not delayed. If you need any help from us in the process please let us know. We are here to help.
Please note that at the time of this writing most of the banks have not started accepting applications and may not until Monday. Keep checking the websites.
One caveat on the 1099 information there are numerous opinions as to whether such payments apply. We have included it but the banks may not agree. If you need further direction, please don’t hesitate to email or call us with any questions.
The Partners and Staff of LHF