The Dining Alliance team has been closely monitoring the situation in Washington regarding the Coronavirus Aid, Relief, and Economic Security (CARES) Act and its impact on the restaurant and foodservice industry. As we track the availability of various type of relief made available under the Coronavirus Aid, Relief and Economic Security (CARES) Act, there are two loans in particular that warrant all of our customers and members’ consideration, The Paycheck Protection Program and the Economic Injury Disaster Loan (EIDL). As new updates become available our team will continue to share resources as we receive them. One loan we have more information on is the Paycheck Protection Program (PPP)
The Paycheck Protection Program loan applications and related guidance from the SBA to apply for these loans can be found here.
Starting April 3, 2020, small businesses and sole proprietorship 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.
In addition, here is a list of items that participating SBA lenders will need from you to begin your application:
- 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
- Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the following information:
- Gross wages for each employee, including officer(s) if paid W-2 wages.
- Paid time off for each employee
- Vacation pay for each employee
- Family medical leave pay for each employee
- State and local taxes assessed on an employee’s compensation
- 1099s for independent contractors for 2019
- Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan. (Include all employees and the company owners)
- Document the sum of all retirement plan funding that was paid by the company owner(s) (do not include funding that came from employees out of their paycheck deferrals).
- Include all employees and the company owners
- Include 401K plans, Simple IRA, SEP IRA’s
Looking for more regulatory relief information? Explore more of our resources here
DISCLAIMER: Buyers Edge Platform and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.