COVID-19 Update: Beaird Harris has shifted a significant number of our team members to work remotely.
We continue to serve and care for our clients, just as we always have, and are available by phone, video or email.
Beaird Harris will be closed on Friday, July 3rd in observance of the Independence Day holiday.
Updated April 7, 2020
(April 7, 2020)
Last night, April, 6, 2020, the Treasury and the SBA released an updated Q&A to address questions on the PPP Loan Program.
This new guidance has a direct impact on many “solo providers” with a pension plan.
From this guidance, it appears you can include a company pension contribution, including a SEP, SIMPLE, 401K/profit sharing match, or defined benefit contribution.
The language for health insurance premiums is unchanged and still references “group health insurance” which seems to preclude individual policies.
Based on this new information, your loan amount could be as follows (assuming one employee making in excess of $100,000 in 2019, contributing maximum amounts to pension in 2019, with no group health insurance premiums).
Our observation is that banks are working through the SBA rules and may not be aware of these new guidelines.
If you have already applied for the loan and your bank did not include qualifying pension contributions from 2019, you may want to request an amendment to your original application for this new guidance.
Please note – the above is for the maximum loan amount that will be given under the PPP Loan Program. The guidance and criteria for loan forgiveness are different from the loan criteria. The SBA has announced they will be providing more detail and guidance on loan forgiveness, which we will share as it becomes available. In all cases, our advice is if you receive PPP loan proceeds, you should be prepared to make repayments of all or some of that amount as new guidance becomes available.
As always, please reach out to your Beaird Harris team member with any questions. We are here to help!
(April 2, 2020)
We realize there is some confusion as to what types of businesses can qualify for the Paycheck Protection Program (“PPP”), a.k.a., 7(a) Loan Program. Specifically, if self-employed, independent contractors, or single person S-Corps qualify for the loan? The answer is yes!
The 7(a) Loan is different than the Economic Injury Disaster Loan (“EIDL”) that provides a $10K grant in addition to a loan. For the majority, the 7(a) Loan allows you to receive more forgiven money than the EIDL. Please note, you cannot receive both the $10K grant through EIDL and the 7(a) Loan forgiveness when the funds are both used for payroll. The other major difference is where you apply for each loan; the EIDL ($10K grant) is applied for on SBA.gov and the 7(a) Loan is applied for through your bank.
While the 7(a) Loan opens for applications on Friday, April 3, 2020, there are still critical details that are not known at this time. Banks do not have guidance from the SBA on exactly what is needed from the business to include with the loan application. We are monitoring this closely and will send an update when this is determined. If you are not receiving our email updates, please contact our Director of Marketing & Communications to be added to the list.
Loan Repayment & Other Details
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