Payroll Protection Program (PPP)/SBA

The Paycheck Protection Program is one of the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Congress's gigantic economic stimulus package that the President signed into law on March 27, 2020.  Here are the details that you need to know.  Please call our office to speak to your accountant if need assistance or have any questions at 302-230-7171 or info@aka-cpa.com.

Applications for small businesses (less than 500 employees) and sole proprietorships may be submitted to your SBA 7(a) approved lender starting April 3, 2020, and by self-employed individuals starting April 10, 2020.  The program is open until June 30, 2020, however funds are limited and we encourage you to be prepared to apply on April 3, 2020.

What you will need to apply:

  • Average monthly payroll for 2019, reduced by payroll in excess of $100,000 for employee (modifications are made for seasonal and new businesses), and the number of employees you currently employ. The lender may ask for supporting documentation which may include payroll reports and/or quarterly payroll tax forms.
  • The questions and certifications on the application completed and signed by each owner with a 20% or greater interest in your business.
  • You must attach an addendum to the application identifying any affiliated businesses and a description of the relationship.

Things you need to know:

  • Proceeds can be used to cover payroll costs, most mortgage interest, rent and utility costs for an 8-week period after the loan is made.
  • In order for the loan to be forgiven, the number of employees and compensation levels must be maintained during this period.
  • At least 75% of the forgiven amount must be used for payroll costs; therefore, no more than 25% of the forgiven amount can be used for non-payroll costs.
  • You will submit a request and required documentation to the lender servicing the loan to request loan forgiveness.
  • Amounts not forgiven, the remaining loan, will have a fixed rate of .5%, deferred payments for 6 months (interest will accrue), a 2 -year term, no prepayment penalties no collateral and no personal guarantees.

We have detailed the highlights of the program, but please be sure to read the entire application and other program details provided directly by the SBA or your lender. 

Please do not hesitate to contact us with questions at 302-230-7171 or info@aka-cpa.com.

For additional details and FAQs available through AICPA, please click here

To access the Payroll Protection Program (PPP) Application, please click here.

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At Albero, Kupferman & Associates, we've been serving the accounting needs of WILMINGTON, DE and the surrounding areas for years. If you need help managing any aspect of your home or business's finances, we want to hear from you.

Please fill out this form and let us know how we can be of service. We will happily set up your initial consultation to determine how we can best serve you.

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Saturday: Closed
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Albero, Kupferman & Associates

1701 SHALLCROSS AVENUE SUITE D,
WILMINGTON, DE 19806
T: (302) 230-7171
F: (302) 472-1700
E: info@aka-cpa.com

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