Parish 3rd Webinar on Updates to the Covid-19 EIDL Acceptance, EIDL - - PDF document

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Parish 3rd Webinar on Updates to the Covid-19

EIDL Acceptance, EIDL Closing, PPP Updates & Adjustment to Shared Expenses Tuesday June 9th 11:00 a.m.

Agenda For Today

Welcome everyone and opening prayer

• 1. EIDL Loan Acceptance 60-Day Hold Process
• 2. EIDL Closing Process Overview
• 3. EIDL Advance Only Process
• 4. PPP Loan Forgiveness Changes
• 5. Loan Forgiveness Period
• 6. Calculate Payroll Sums in Period
• 7. GAAP Standards
• 8. Adjustments to Shared Cluster Expense
• 9. Thoughts from Kyle Torvinen
• 10. Q&A
• 11. Closing thoughts from Bishop

Closing Prayer

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Economic Injury Disaster Loan (EIDL) Has Two Parts: A Loan & An Advance

Loan Information

• Up to $2 million
• The interest rates for this disaster are 3.75% for small

businesses and 2.75% for nonprofit organizations with terms up to 30 years determined on a case-by-case basis

• Eligibility is based on the size and type of business and its

financial resources

• 12 month payment deferral on EIDL loan; interest accrues

Two Parts: A Loan & Advance

• Advance will be for up to $10,000.
• The form to apply is part of the economic injury

disaster loan (EIDL) application.

• If approved, these funds can be used for payroll and
• ther operating expenses and will be forgiven.
• Advance is $1,000 per employee.
• Payment will come in two parts, the advance first

and then the loan. The amount given is to each entity is determined by SBA. You do not have to accept the full amount.

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EIDL-How Can it Be Used?

• Fixed debts (rent, etc.)
• Payroll
• Accounts payable
• Some bills that could have been paid had the disaster not
• ccurred.

Sample email

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Sample email

EIDL Portal

Acceptance Screens:

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Click Review and Accept the Amount, and you return to the initial screen. You can now choose to Verify your Identity.

2.75%

EIDL Portal

Acceptance Screens:

EIDL Portal

Acceptance Screens:

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EIDL Portal

Acceptance Screens:

Click Submit for Processing, then the screen refreshes:

Stop after submit for processing step

Do not sign closing documents without proper Diocese Approval and unless you want to initiate the loan now.

EIDL Portal

Acceptance Screens:

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EIDL Portal

Acceptance Screens:

EIDL Portal

Acceptance Screens:

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EIDL Portal

Closing Screens:

EIDL Portal

Closing Screens:

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EIDL Portal

Closing Screens:

EIDL Portal

Closing Screens:

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EIDL Advance Only

The EIDL Advance is a separate approval process from the EIDL Loan process. Therefore you do not need to accept the loan in

• rder to keep the Advance only funds.

PPP-Reminder of use of funds:

• Must use loan proceeds for:
• Payroll costs
• Rent
• Mortgage interest and
• Utilities
• SBA advising that not more than 25% of the loan proceeds can

be used for non-payroll costs

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PPP-Updates

• Lower the requirements that 75 percent of a borrower’s loan proceeds must be

used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.

• Provide a safe harbor from reductions in loan forgiveness based on reductions in

full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.

PPP Updates

• Provide a safe harbor from reductions in loan forgiveness based on

reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees

• f the borrower on February 15, 2020, and unable to hire similarly qualified

employees for unfilled positions by December 31, 2020.

• Increase to five years the maturity of PPP loans that are approved by SBA

(based on the date SBA assigns a loan number) on or after June 5, 2020.

• Extend the deferral period for borrower payments of principal, interest,

and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).

• In addition, the new rules will confirm that June 30, 2020, remains the last

date on which a PPP loan application can be approved.

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PPP

• More updates are coming on the application and forgiveness

process along with more specific terms for the 8-24 week period.

• We will cover the PPP Application Forgiveness Process in next

webinar

Questions

Contact Information: Andy Donahue Nikki Olson adonahue@uwsuper.edu nolson37@uwsuper.edu (715) 394-8352 (715) 394-8147