The CARES Act: Paycheck Protection Program Overview March 30, 2020 - First National Bank USA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The CARES Act: Paycheck Protection Program Overview March 30, 2020
Introduction
First National Bank USA is local bank that has been serving the river parishes
since 1975. We are a no hassle bank that will have a live person answer your call
and speak to you.
FIRST NATIONAL BANK USA, 13386 Hwy 90, Boutte, LA
Phone: (985) 785-8411
• Brandt J Dufrene, Chairman, President & CEO brandtd@fnbusa.com
• Audrey Raziano, CAO, Sr Vice President, audreyr@fnbusa.com
• Greg Berthelot, Vice President, gregb@fnbusa.com
FIRST NATIONAL BANK USA, 377 Belle Terre Blvd, Laplace LA
Phone : (985) 651-0781
• Robert Laiche, Vice President, robertl@fnbusa.com
• Emily Frost, emilyf@fnbusa.com
• Darlene Becnel, darleneb@fnbusa.comCARES Act
Key Elements
• $500B Corporate Liquidity Fund
• $150B State Stabilization Fund
• $1,200+ Individual Financial Assistance
• Enhanced Unemployment Insurance
• And more…
For Informational Purposes Only; Subject to ChangePaycheck Protection Program
Why Is This Different?
• The loans are made by private, local banks
not the SBA – ensuring speed
• The loans, if used on payroll and other
operating expenses, are forgivable
For Informational Purposes Only; Subject to ChangePaycheck Protection Program
Eligibility
• Businesses, 501(c)(3)s
• Self-employed, independent contractors, sole
proprietors
• 501(c)(19) veterans organization
• Less than 500 employees (or meet SBA “small”
definition)
• Food & accommodation sectors (NAICS 72) size
standard applied per location
For Informational Purposes Only; Subject to ChangePaycheck Protection Program
Calculating Loan Amount
1. Average monthly payroll costs over last 12 months,
including:
• Salaries, wages, commissions, tips
• Vacation, sick, medical leave paid
• Group health care benefits, including insurance
premiums
• Retirement benefits
• State or local tax on employee pay
2. Multiply by 2.5 (i.e. 2 ½ months gross payroll)
3. Capped at $10M
For Informational Purposes Only; Subject to ChangePaycheck Protection Program
Calculating Loan Amount
You CANNOT include:
• Salary exceeding $100,000 can include up to
$100,000
• Pay to employee living outside U.S.
• Qualified sick leave already being credited
through Families First Act
• Payroll taxes, income taxes or railroad retirement
For Informational Purposes Only; Subject to ChangePaycheck Protection Program
Loan Forgiveness
• Payroll and benefit costs
• Rent or mortgage payments
• Utilities (electricity, water, internet, phone)
• Paid sick, medical, family leave (except
duplication of benefits)
• Interest on existing debt
The Federal Government has not given guidance the Federal Government on this definition.Paycheck Protection Program
Loan Forgiveness
• Forgiveness allowed for business expenses over 8-
week period
• Includes: payroll & benefits, interest on existing
mortgage debt, rent & utilities
• Amount of forgiveness reduced for employee
reductions compared to prior year
• Borrowers that rehire workers previously laid off
won’t be penalized for having smaller payroll at
beginning of periodPaycheck Protection Program
Application Process
• First National Bank USA, Boutte and LaPlace, LA
• 100% guaranteed by SBA
• No collateral required by SBA; may be by bank
• Borrower will not have to prove they could not obtain
credit elsewhere
• Interest rate capped at 4%Paycheck Protection Program
Loan Process - Documentation
The SBA as of this date has not given guidance on what is needed,
However, this is what we may need for the loan.
• Completed application
• Articles of incorporation/Org.
• Bylaws/operating agreement
• Owners’ driver’s licenses
• Payroll expense verification
• Trailing 12-month profit and loss
statement and balance sheet
• Detailed debt schedule
• Most recent tax filings, mortgage/rent
statements, utility billsPaycheck Protection Program
PPP vs Economic Injury Disaster Loan (EIDL)
Type of Loan Administration Terms of Maximum
Program Payback Loan
Amount
PPP Private Banks • 10 years $10M Max
(SBA • 4% int.
guaranteed) • Portion
forgivable
EIDL SBA • 30 years $2M Max
• 3.75% int.
• Paid in fullPaycheck Protection Program
Submit Questions to First National Bank USA
Boutte Location – 985-785-8411
13386 Hwy 90, Boutte, LA 70039
Brandt Dufrene – brandtd@fnbusa.com
Audrey Raziano – audreyr@fnbusa.com
Greg Berthelot – gregb@fnbusa.com
LaPlace Location – 985-651-0781
377 Belle Terre Dr, LaPlace, LA
Robert Laiche – robertl@fnbusa.com
Emily Frost – emilyf@fnbusa.com
Darlene Becnel – darleneb@fnbusa.comPaycheck Protection Program • I’m getting an SBA Economic Injury Disaster Loan - am I also eligible for this? Yes, you can obtain and retain both EIDL and PPP loans if they are used for different purposes. You can also refinance an EIDL with a PPP. • What type of documentation will I need to submit to have my loan forgiveness? Lenders want to see proof that workers were paid in the 8 weeks after loan origination.
Paycheck Protection Program • If my loan is not forgiven, when do I need to start paying off my loan? Payments must start between 6 months – 1 year after loan origination. • Is there a deadline to apply for this loan? Loans must be funded by June 30 – unless the deadline is extended.
Paycheck Protection Program • Am I eligible if I started my business in 2020? Yes. Payroll costs considered will be those incurred this year and your Jan. & Feb. 2020 payroll cost will be used. • What types of employees can I include in my loan calculation – only full-time, or part-time also? How about 1099 employees? You include all employees – FT and PT; include both W2 and 1099 workers
Paycheck Protection Program • How do the affiliation rules work in calculating number of employees? Affiliation rules are waived for businesses operating as a franchise with a NAICS 72 code (Hospitality). Typical SBA 7(a) affiliation tests for others. • How does a sole proprietor calculate payroll if I’m the only employee? You would use your own income or net earnings.
Paycheck Protection Program (PPP) Forgivable Loan
• First National Bank USA will have authority to process, close, & service a loan
without SBA review.
• SBA will soon provide First National Bank USA with the guidance to begin accepting
applications.
• Potential applicants are advised to begin assembling the following documentation
to expedite the application process:
o Articles of Incorporation & Governing Bylaws or Operations Agreement
o Owner Driver's License
o Payroll expense verification (W-2's, 1099's)
o Trailing 12-month P&L, Balance Sheet (non-audited)
o Debt Schedule
o Most recent tax filings
o Mortgage/rent receipts, utility bills, property insurance payments.
• Loans can be used for employee salaries, payroll costs, mortgage payments, rent,
utilities, & any debt obligations incurred before the cover period.
• Loans can be forgiven to the extent & proportion that the loan proceeds have been
used to maintain a company workforce that is not less than the number it had
before the crisis began.You can also read
