Treasure Coast Legal’s Qualified SBA Lending Partners, Pharus Funding Partners & Fountainhead Commercial Capital, are currently accepting applications for Payroll Protection Loan funding. Treasure Coast Legal has partnered with Pharus and Fountainhead to assist business owners in our community during this difficult time. Treasure Coast Legal receives .005% of the loan amount as compensation for assisting individuals in the loan application process. This means if you are receiving a $15,000.00 loan Treasure Coast Legal would receive $75.00 as compensation. Please consult with your bookkeeper, accountant, or tax professional if you need assistance in determining your loan amount or gathering the necessary documentation.

SBA Coronavirus Relief Loan

The CARES Act was signed in to Law by President Trump on March 27, 2020. The Act provides over $350 Billion in lending authority through the SBA in response to the COVID-19 crisis through the Payroll Protection Program. Businesses with less than 500 employees are eligible for the forgivable loan. StimulusAdvisor is ready, willing and able to provide guidance and assistance to entrepreneurs through the application process.

SBA 7(a) Paycheck Protection Program Loan

The following are the aspects of the Paycheck Protection Plan as we have interpreted in the CARES Act. These are subject to change upon guidance from the SBA and the U.S. government.

Who Is Eligible?

ONLY Businesses in operation on February 15, 2020 with employees paid salaries and payroll taxes or Independent Contractors paid and reported on a Form 1099-MISC are eligible for a PPP loan.

• Businesses with less than 500 employees whose principal place of business is in the United States.
• ​501©(3) nonprofit, 501©(19) veteran’s organization, 31(b)(2)© Tribal Business Concerns.
• Sole-proprietors, independent contractors, and other self-employed individuals.

Who Is NOT Eligible?

• Any Business engaging in illegal activity under federal, state or local law.
• ​Household employers. You cannot file to pay household employees such as nannies of housekeepers.
• ​Any business with an owner of 20 percent or more equity who is incarcerated, on probation or parole, currently being prosecuted under formal charges or has been convicted of a felony within the last five years.
• ​Any business owned or controlled by anyone who is delinquent on a current government loan or who has defaulted within the last seven years and caused a government loss.

How Much Can I Borrow?

Determine your total payroll costs for the last year, including salaries, wages, commissions, tips, vacation leave, sick leave, group health coverage including insurance premiums, retirement benefits, state and local employment taxes.

Deduct any compensation paid to an employee in excess of $100k. Determine the average monthly payroll costs (divide by 12) and multiply by 2.5.

Add the outstanding amount of any Economic Disaster Loan and subtract any advance under an EIDL COVID-19 loan.

The maximum loan amount is $10 million.

What Can I Use the Loan For?

• Payroll costs excluding compensation above $100,000 per year.
• ​Mortgage interest payments, not principal payments
  ​* Rent
• Utilities
• ​Interest on any other debt incurred before February 15, 2020.

75% OF THE LOAN HAS TO BE USED FOR PAYROLL COSTS.

• What Is The Interest Rate, Term and When Do I Have to Make the First Payment?

  The interest rate is 1% and the term of the loan is 2 years, not ten years. You don’t have to make a payment for the first six months but the interest accrues.

• Do I Have to Put Up Collateral?

  No, it is unsecured.

• Do I Have to Give a Personal Guarantee

  No.

• Is the Loan Really Forgivable?

  Yes. The entire loan and accrued interest can be forgiven, but only for payroll costs, mortgage interest, rent and utilities incurred over the 8 weeks following the date of the loan. No more than 25% of the amount forgiven can be for non-payroll costs. The SBA will be issuing additional guidance on loan forgiveness which is expected to include requirements for the retention and rehiring of employees.

What Documents Do I Have to Provide with My Application?

The SBA issued an Interim Final Rules that states:

“Borrowers must submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship. For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.”

The documents that may be used and/or required to establish eligibility are, including but not limited to:

• Articles or Incorporation/Organization proving you were in business prior to February 15, 2020.
• Copies of all Owner’s Driver’s Licenses.
• IRS Forms 940 and 941 for 2019.
• ​Employer’s State Quarterly Report (RT-6 in Fla.)
• ​Payroll Summary Report with corresponding bank statement.
• Form 1099-MISC for Independent Contractors.
• ​Income and Expense Reports for Sole Proprietors

PLEASE NOTE THAT DIFFERENT OR ADDITIONAL SUPPORTING DOCUMENTS MAY BE REQUIRED BY YOUR APPROVED