We want to make sure our clients are taking advantage of the Paycheck Protection Program (“PPP”). This loan program helps small businesses (generally 500 employees or less) keep their employees on the payroll and to provide funds to operate their businesses. Small businesses can get a PPP loan from their bank and use it to pay payroll, health care benefits, rent, interest on an existing mortgage, utilities and interest on certain debts.

Step 1: Application

The first step is completing the required application. The application is available by visiting https://www.sba.gov/sites/default/files/2020-04/PPP%20Borrower%20Application%20Form.pdf.  

Step 2: Submit to Approved Lender

The application must be submitted to an SBA approved Lender. You can use any SBA approved lender that you would like, including your current banker. If you are not working with someone yet, you can find a local community bank by visiting https://www.icba.org/about/find-a-community-bank. Additionally, Joseph B. Snyder at California Bank & Trust is set up and waiting to process these loans. He can be reached at (858) 720-9373 or by email at joseph.snyder@calbt.com. To use Joe, simply send him an email with the subject line “PPP.”  You may send your email secured by clicking hereThe email should include:

  1. The completed loan application
  2. The summary and detailed payroll information for calendar year 2019 (year-end report), and
  3. The summary and detailed payroll information for the period beginning January 1, 2020 through February 29, 2020 (first quarter report).

Program Details

There is NO fee to the borrower for this loan application.  SBA approved lenders are paid between 1% – 3% depending on the amount of the loan – by the government.  If clients are being asked to pay a fee, that is an unnecessary and unauthorized fee, usually a charge by a loan broker, who is going to do nothing more than hand it off to an SBA approved lender. Brokers, in this case, provide no value because of the way this loan program is underwritten.

The eligible loan amount determined by combining the following payroll categories into a monthly average and multiplying the result by 2.5X, not to exceed $10 million:

  • Salary, wages, commissions, tips (capped at $100,000 annualized for each employee).
  • Employee benefits including: vacation, parental, family, medical or sick leave; allowance for separation or dismissal; payments for group health care benefits including insurance premiums and payment of any retirement benefit.
  • State and local taxes assessed on compensation.
  • For sole proprietor or independent contractors: wages, commissions, income, or net earnings from self-employment capped at $100,000 on an annualized basis for each employee.