April 3, 2020

If you know someone who owns a business, is a sole proprietor, or a contract employee and you want to help them, the information below is critically important!

The Small Business Administration (SBA) has implemented the Paycheck Protection Program (PPP) to aid businesses during COVID-19. The rollout of this program has been confusing for a lot of businesses (and lenders) and has raised a lot of questions about how businesses can obtain the funds to retain their employees.

Background Information

The PPP is designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Once you obtain the funds, you will need work closely with your lender to verify that you are following the SBA’s guidelines if you wish you to have all of your loans forgiven.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

Is Your Company Eligible to Apply?

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.

 How Do I Apply?


The link above will take you directly to the PPP application on the SBA’s website. Once you view the document, you will see that the process is very simple and only four pages in length.

Prior to completing the application, you will need your company’s payroll information. To gather this data, it is best to get assistance from your CPA, Bookkeeper, Accountant, etc. as it is very important to provide accurate information. Here is a list of preliminary information that you will need in order to make sure you qualify for the correct amount of loans:

  • 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 401(k) plans, Simple IRA, SEP IRA’s.

Where Do I Apply?

You can apply through any existing SBA 7(a) lender or through any banking institution, federally insured credit union, and Farm Credit System institution that is participating (most are). 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 the program. We can assist in getting you in touch with great lenders!

From our analysis, many banks are participating in this program. We have found that most banks  may require you to have a working relationship with them in order to apply for the loans. It is best to contact the bank that you have a relationship with and ask them if they are participating in this program. They will be able to walk you through the information that they are going to require and give you a idea of what their process looks like.

When Can I Expect Funds?

It is currently unclear how long the processing times will be for businesses to receive their funds. We recommend for you to be patient and stay in touch with your lender. Your lender will keep you updated on the status of your application and will be able to provide you with guidance in order to make sure you receive your funds in a timely manner.

We want to help you during this process and answer any questions that you may have. You are encouraged to call us at (859) 223-6333 or email us at sfa@spectrumalliance.com if you have any questions about this program and what it could mean for your business. Our team is ready to assist you!

Warmest Regards, 

C. Kelly Buckley, MBA, CFP®

Managing Principal

Managing Director for Asset Management


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