On April 21st, we participated in a webinar discussing next steps after you’ve applied for a PPP loan. Below is a recording from the video as well as a copy of the slide presentation. If you have any questions, please contact us to discuss your specific issue.
During the session we had a handful of questions that we didn’t have a chance to respond to. We have listed the responses below.
What if you receive the loan in the middle of a pay period?
As of now, I would suggest that you charge the component of payroll that was incurred after the date the loan was received to the forgivable amount.
Is telephone and internet considered a utility? We received our proceeds on 4/17 – unfortunately we had a paydate on 4/15 and then on the 15th and end of month after that
The answer is telephone and internet are considered utilities. As of now you will need to apply the payroll payments made on the next 2 successive months towards your payroll obligation.
Could an independent contractor who is a sales representative receive a PPP loan based on commissions earned in 2019?
The answer is yes up to a maximum amount of 100k provided that they were in business in 2020.
What if you have no demonstrable negative economic impact and received PPP? You otherwise qualify for forgiveness
In order to receive a PPP loan you are required to sign and certify that you have been negatively impacted by COVID -19.
Could you please re-explain what you said about the $100,000 and additional cash benefits? Slide 10, I believe.
We were basically saying that in determining payroll costs, the maximum allowable expense is 100k in payroll plus pension benefits, health insurance, and state and local payroll taxes.
$100,000 partnership or $100,000 each partner allowed?
The answer is $100,000 per partner.
Are phone and internet included in utilities? We are a school and they are our largest utility costs.
The answer is yes.
Note: The answers above are just a general response in the context of a seminar and it is simply meant to be a general statement of what we believe to be the law. Please feel free to contact us or your attorney with any specifics questions you have.