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Understanding the Paycheck Protection Program

The COVID-19 pandemic has created a challenging and rapidly changing business environment. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides emergency financial relief to businesses through the Paycheck Protection Program (PPP). PPP authorizes the Small Business Administration (SBA) to provide up to $349 billion in forgivable loans for small businesses to pay their employees during the COVID-19 crisis.

While this is good news, navigating and understanding the financial and operational details of PPP can be challenging and overwhelming for many business owners. If your business has not yet applied for PPP, you need to act quickly as you can due to funding caps and the time to process the loan.  If you still have questions about PPP, we have some answers that will help you get started. 

Who can apply?

Any for-profit business or nonprofit 501(c)(3) with 500 or fewer employees may be eligible to apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries. One loan will be granted per business, and a taxpayer identification number (TIN) is required to apply.

How to apply?

Each business is required to fill out the Paycheck Protection Program loan application and provide any documentation required by the approved lender such as a W3 and payroll information. 

Where can you apply?

You can apply for a PPP loan through any SBA approved bank. However, because each bank applies different criteria in what they require for backup documentation, Ataraxis has established a banking relationship that streamlines the application process for our clients. We work with an approved SBA lender that understands the PEO relationship to help expedite the application submission and provide backup payroll documentation directly to the bank. 

How much money is a business eligible for?

The maximum loan granted from the SBA for a PPP loan will be 2.5 times your average monthly payroll costs from the last year, or $10 million, whichever is greater. Payroll costs will be capped at $100,000 annualized for any single employee.  

What are the terms of the loan?

All loans have a 1% fixed interest rate, require no collateral and will be due in two years with no prepayment penalties or fees. There is no application fee. Loan payments will be deferred for six months, however, interest will continue to accrue over this period. The Small Business Administration (SBA) will forgive loans if all employees are kept on the payroll for eight weeks and if 75% of the money is used for payroll with the remaining for rent, mortgage interest, or utilities, however the rules of forgiveness have not finalized, so this could change some.  We will keep our clients updated as we learn more.

Help for your business

We have streamlined the application process for our business clients by creating payroll reports and W3 tax information that are used in acquiring PPP loans.  We are tracking and updating our clients throughout the loan process.  

The COVID-19 pandemic has created a challenging and rapidly changing business environment. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides emergency financial relief to businesses through the Paycheck Protection Program (PPP). PPP authorizes the Small Business Administration (SBA) to provide up to $349 billion in forgivable loans for small businesses to pay their employees during the COVID-19 crisis.

While this is good news, navigating and understanding the financial and operational details of PPP can be challenging and overwhelming for many business owners. If your business has not yet applied for PPP, you need to act quickly as you can due to funding caps and the time to process the loan.  If you still have questions about PPP, we have some answers that will help you get started. 

Who can apply?

Any for-profit business or nonprofit 501(c)(3) with 500 or fewer employees may be eligible to apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries. One loan will be granted per business, and a taxpayer identification number (TIN) is required to apply.

How to apply?

Each business is required to fill out the Paycheck Protection Program loan application and provide any documentation required by the approved lender such as a W3 and payroll information. 

Where can you apply?

You can apply for a PPP loan through any SBA approved bank. However, because each bank applies different criteria in what they require for backup documentation, Ataraxis has established a banking relationship that streamlines the application process for our clients. We work with an approved SBA lender that understands the PEO relationship to help expedite the application submission and provide backup payroll documentation directly to the bank. 

How much money is a business eligible for?

The maximum loan granted from the SBA for a PPP loan will be 2.5 times your average monthly payroll costs from the last year, or $10 million, whichever is greater. Payroll costs will be capped at $100,000 annualized for any single employee.  

What are the terms of the loan?

All loans have a 1% fixed interest rate, require no collateral and will be due in two years with no prepayment penalties or fees. There is no application fee. Loan payments will be deferred for six months, however, interest will continue to accrue over this period. The Small Business Administration (SBA) will forgive loans if all employees are kept on the payroll for eight weeks and if 75% of the money is used for payroll with the remaining for rent, mortgage interest, or utilities, however the rules of forgiveness have not finalized, so this could change some.  We will keep our clients updated as we learn more.

Help for your business

We have streamlined the application process for our business clients by creating payroll reports and W3 tax information that are used in acquiring PPP loans.  We are tracking and updating our clients throughout the loan process.  

If you are not currently an Ataraxis client, we can still help you with the application process. Give us a call at 208-906-2636.

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Kylee Nawahine
Sales Manager