endobj Section I - CARES Act Section 1102 - Paycheck Protection Program (PPP) and Section 1106 – Loan Forgiveness . CARES ACT - Section 1102 Paycheck Protection Program (PPP) 1502 Dashboard Enrollment for Paycheck Protection Program Lenders The 1502 Dashboard (Dashboard) is available through the Sign In drop-down menu available on the Fiscal Transfer Agent (FTA) homepage, https://colsonservices.bnymellon.com. I have some anxious clients to talk to next week, this has given me a better understanding to help them. sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). 2. Section 1102 provides $350 billion for expedited individual loans up to$10 million through approved lenders that are guaranteed 100 percent by the U.S. government. Section 1102 of the Act establishes the PPP as a temporary addition to the SBA’s 7(a) loan program. !7ά�p�����/Z��:M�W���O�_+�-K%P���>e9Q=�C>�p����x�Λ(�7��&�fL@�_���"]���T��U�8QR�C�[���H`�f�R��8��V�H��p��j "*�X��R6�ɯ>�{˚>�Ly%Y� 6��3펪�~���*���akR0sZ�\�Y,��� However, following those rules does not mean the Government will discharge your PPP loan. The PPP was created under section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) (P.L. References. PPP is covered in section 1102 page 6. 1. There is one main requirement, governed under section 1102 of the CARES Act that brought the PPP into effect. The receipt of the loan funds, including PPP funds, are not subject to income tax. x��=ko�H���?���B\D��f��@���Y��d�I���� ۊ-D�=��ć��WU�$ْl�5� ��棪��]����j=�:=_'?��v�^Oϯfɯo���������ۏ���r���,�~�? The goal of this program is to enable employers to carry their payroll and other operating costs through this crisis. Note: Section 7(a)(36)(O) of the Small Business Act as amended by section 1102(a) of the CARES Act (15 U.S.C. Q… Paycheck Protection Program – Section 1102 The bill establishes a new guaranteed loan program at SBA for small businesses to cover payroll during the immediate crisis. 2 Quote; Link to post Share on other sites. (a) Definition of covered period.—In this section, the term “covered period” means the period beginning on March 1, 2020 and ending on December 31, 2020. Under section 1102 of the CARES Act, certain provisions regarding the issuance and use of PPP loans are limited to the “covered period.” “Covered period,” as that term is used in section 1102 of the CARES Act, was originally defined as the period from February 15, 2020, to June 30, 2020. Section 1102, created the PPP under section 7(a) of the Small Business Act. For example, a business may wish to use the Paycheck Protection Program (PPP) established pursuant to sections 1102 and 1106 of the CARES Act for certain relief and request agency support under section 3610 for other relief. <> The Small Business Administration’s (“SBA”) release of its official loan forgiveness application under the Paycheck Protection Program (“PPP,” Section 1102 of the CARES Act) answered a number of questions that borrowers and their legal and accounting advisers had regarding the program. Under section 1102 of the CARES Act, a seasonal employer may determine its maximum loan amount for purposes of the PPP by reference to the employer’ average total monthly payments for payroll “the 12-week period beginning February 15, 2019, or at the election of the eligible [borrower], March 1, 2019, and ending June 30, 2019.” On April 9, 2020, the Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation <> Section 1102 of the CARES Act provided that PPP borrowers who had received an EIDL loan between January 31, 2020 and April 3, 2020, could (and in some circumstances had to) increase their PPP … Section 1102 of the CARES Act provides for US$349 billion in funding for loans through the PPP, an expansion of the SBA’s existing 7(a) loan program 1 aimed at supporting small businesses and encouraging those businesses to retain their workers. ���/�z. Sec. This pr ogram is administered by the . Hospital participation 2 0 obj <>/Metadata 211 0 R/ViewerPreferences 212 0 R>> 636(a)(36)(O)) requires that PPP loans be risk-weighted at 0% under risk-based capital requirements. Section 1102 of the Act temporarily adds a new product to the U.S. Small Business Administration’s (SBA’s) 7(a) Loan program and Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the PPP. 4 0 obj endobj The PPP is designed to assist small businesses nationwide adversely impacted by the coronavirus pandemic. An additional $310 billion was allocated under the Enhancement Act. 636(a)) that was designed to assist small businesses nationwide adversely impacted by the COVID–19 emergency to pay payroll costs and other covered expenses. (a) IN GENERAL.—Section 7(a) of the Small Business Act (15 U.S.C. Many of the people and companies that received a PPP loan already know and navigated these rules. �5>ǁ������vrC�8��\$g�U�IUrJ�L���z�����l����[Qy����f���7���W�V�0�����N>]��?���|i.t��� The amount of PPL Loan forgiveness allowed for a borrower is the amount equal to the sum of costs incurred and payments made in the “covered period” of the eight weeks after a PPP Loan is originated for (1) payroll costs. Section 1106 of the Act provides for forgiveness of up However, section 3(a) of the Flexibility Act extended the “covered period” as defined in section 1102 … No collateral for first $25,000. Section 1102 of the Act temporarily permits SBA to guarantee 100 percent of 7(a) loans under a new program titled the “Paycheck Protection Program.” Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program. Paycheck Protection Program (PPP) - CARES Act Section 1102 & Small Business Administration (Economic Injury Disaster Loan) March 30, 2020 - The$2.2 trillion coronavirus stimulus bill was enacted by Congress on March 27, 2020. CARES ACT Section 1102 Paycheck Protection Program. Section 1102 of the CARES Act contained many rules that prevented many people from obtaining a PPP loan. Regarding forgiveness of the PPP loans, Section 1106(i) of the CARES Act deems forgiven PPP debt, that would otherwise be Paycheck Protection Program (PPP) (Section 1102; Section 1106): The PPP, which is administered through local lenders by the Small Business Administration (SBA), makes $349 billion available to eligible businesses in the form of guaranteed and potentially forgivable loans. Section 1102 and 1106 of the CARES Act, established the PPP as a new loan program administered by the U.S. Small Business Administration (SBA) as part of its section 7(a) Loan Program (15 U.S.C. SBA/For Lenders - Reporting Section 1102 of the CARES Act - Paycheck Protection Program (PPP) SBA Procedural Notice 5000-20028 PPP Lender Processing Fee Payment and 1502 Reporting Process Effective 05/21/2020; SBA Procedural Notice 5000-20036 Updated PPP Lender Processing Fee Payment and 1502 Reporting Process Effective 07/13/2020; ACH CCD+ Addenda Record Layout This program provides$349 billion in fully guaranteed SBA loans—which can be forgiven if used in accordance with the Act—for certain eligible small businesses, individuals and non-profit organizations to cover payroll, rent, utility payments, and other limited uses. endobj 116-136) and generally allows businesses with fewer than 500 employees to borrow up to $10 million. Protection Program” in Section 1102, with additional modificatons made by the . <> 1102 PAYCHECK PROTECTION PROGRAM – QUICK REFERENCE In General The CARES Act creates a new loan product under the SBA’s 7(a) Loan Program, the “Paycheck Protection Program” (PPP). Under section 1102 of the CARES Act, a PPP Loan will be assigned a risk weight of zero percent under the risk-based capital rules of the federal banking agencies. PPP loans are limited to the “covered period.” “Covered period,” as that term is used in section 1102 of the CARES Act, was originally defined as the period from February 15, 2020, to June 30, 2020. %���� • The Paycheck Protection Program (PPP) under Section 1102 of the CARES Act provides forgivable loans to small businesses. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> The self-certification requirement—or more accurately, the fluid nature of the self-certification requirement. Loan forgiveness section 1106 page 19 EDIL section 1110 page 26. %���� SEC. Apr 4. On April 9, 2020, the Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation Posted April 4. jklcpa. The PPP is designed to assist small businesses with 500 or fewer employees maintain payroll and pay for qualified expenses during the coronavirus quarantine period. contractors, and self-employed 500 or fewer employees Apply by June 30, 2020. Paycheck Protection Program (PPP) Loans (Act Section 1102) Potentially forgivable loan for businesses to continue paying employees For small- to medium sized business; payments deferred for six months; no collateral and no guarantee For-profit, nonprofits, sole proprietors (w/ or w/o employees), ind. <> Thank you, Dan. The Coronavirus Aid, Relief and Economic Security Act (CARES) is an extensive stimulus package. 1 0 obj endobj Most of the requirements work simply. Noting that “small businesses need to be informed on how to apply for a loan and the terms of the loan under section 1102 of the Act as soon as possible,” the SBA provided that the interim final rule is effective immediately. 2 0 obj Forum Moderator; Donors; 5,470 posts; State:--Report; Share; Posted April 4. Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). Section 1102 of the CARES Act states that “interest expense related to covered mortgage obligation (related to real or personal property)” and “interest on any other debt obligations that were incurred before the covered period” are allowable uses of the PPP funds. Short title. This article summarizes sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act” or the “Act”) as clarified by the interim rules issued by the U.S. Small Business Administration, the named Administrator under the Act (the “SBA” or “Administrator”). 1102. Section 1102 also waives SBA fees for borrowers and lenders, and provides processing fees to the lender from the SBA for servicing the loan. The U.S. Small Business Administration has also allowed for Additional Qualified Financial Institutions to be eligible as PPP Lenders under the authority of the U.S. Small Business Administration under CARES Act Section 1102. While borrowing rates are established by the lender, the SBA has set a maximum rate of 4% and also prevents any prepayment charges from being assessed against a borrower under this program. 1102 PAYCHECK PROTECTION PROGRAM – QUICK REFERENCE In General The CARES Act creates a new loan product under the SBA’s 7(a) Loan Program, the “Paycheck Protection Program” (PPP). Table of contents. Small Business Administration (SBA), with the support of the Department of Treasury. Under section 1102 of the CARES Act, certain provisions regarding the issuance and use of PPP loans are limited to the “covered period.” “Covered period,” as that term is used in section 1102 of the CARES Act, was originally defined as the period from February 15, 2020, to June 30, 2020. The Paycheck Protection Program would: • Support$349 billion in 100 percent guaranteed, low interest, no fee loans of up to $10 Many businesses are actively trying to determine how to count employees for purposes of determining whether they can avail themselves of the loan and grant stimulus provided by the Paycheck Protection Program (PPP) in Sections 1102 and 1106 of the CARES Act.We summarized the PPP program here.Basically, the PPP expands the SBA 7(a) loan program to allow “eligible entities” to … The PPP is designed to assist small businesses with 500 or fewer employees maintain payroll and pay for qualified expenses during the coronavirus quarantine period. <>/Metadata 92 0 R/ViewerPreferences 93 0 R>> Use of PPP Loan Proceeds Under section 1102 of the CARES Act, certain provisions regarding the issuance and use of PPP loans are limited to the ‘‘covered period.’’ ‘‘Covered period,’’ as that term is used in section 1102 of the CARES Act, was originally defined as the period from February 15, 2020, to … Section 1102 of the Act temporarily permits SBA to guarantee 100 percent of 7(a) loans under a new program titled the ‘‘Paycheck Protection Program.’’ Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program. [��_fӋ�j4J��M��_�ʳ�5�'yR�_��d5{��N��_}y��� K��2����+�� K$�r^&�,3Γ/�p���2���g&�tT���_�:H�'_����1�_� %ǿL���yt�^�\o�����z������rQfM�TMV�|q�y�rxHV4�KV���O4�t(��|x���}:dr���J ��!�&0^����$p\��:�t 4 0 obj Specifically, some of those FAQs involve explaining the requirements under the Bank Secrecy Act (BSA), and how lenders can meet those requirements when issuing a PPP loan. The Small Business Administration’s (“SBA”) release of its official loan forgiveness application under the Paycheck Protection Program (“PPP,” Section 1102 … 3. The Paycheck Protection Program (PPP) – the program created under Section 1102 of the CARES Act to offer small businesses forgivable loans – has made headlines since its creation. Paycheck Protection Program – Section 1102 The bill establishes a new guaranteed loan program at SBA for small businesses to cover payroll during the immediate crisis. Many businesses are actively trying to determine how to count employees for purposes of determining whether they can avail themselves of the loan and grant stimulus provided by the Paycheck Protection Program (PPP) in Sections 1102 and 1106 of the CARES Act.We summarized the PPP program here.Basically, the PPP expands the SBA 7(a) loan program to allow “eligible entities” to … The loan is available for employers and 501(c)(3) organizations under The Paycheck Protection Program was established by section 1102 of the CARES Act. As the administrator of the BSA, Lender agreement to make SBA-guaranteed financing available as part of the CARES Act. Section 1102 of the CARES Act provided that PPP borrowers who had received an EIDL loan between January 31, 2020 and April 3, 2020, could (and in … Section 1102 and 1106 of the CARES Act, established the PPP as a new loan program administered by the U.S. Small Business Administration (SBA) as part of its section 7(a) Loan Program (15 U.S.C. 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