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Paycheck Protection Program

Coronavirus Aid, Relief, and Economic Security (CARES) Act

International Funding Group is currently offering access through its lending partners to stimulus relief funding under the Economic Security Act (Cares Act). No collateral or personal guaranty required. 


Lending is at a fixed a 1% interest rate and the SBA guaranty fee is waived. 

Loans up to $10,000,000.  


Types of businesses and entities are eligible for a PPP loan:

• Businesses and entities must have been in operation on February 15, 2020. 

• Small business concerns, as well as any business concern, a 501(c)(3) nonprofit organization, a 501(c)(19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher. 

• Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals. 

• Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived. 

• Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration, and company that receives funding through a Small Business Investment Company.


What are affiliation rules? 

Affiliation rules become important when SBA is deciding whether a business’s affiliations preclude them from being considered “small.” Generally, affiliation exists when one business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses. Please see this resource for more on these rules and how they can impact your business’s eligibility.


What types of non-profits are eligible? 

In general, 501(c)(3) and 501(c)(19) non-profits with 500 employees or fewer as most nonprofit SBA size standards are based on revenue, not employee number. You can check here.


How is the loan size determined? 

Depending on your business’s situation, the loan size will be calculated in different ways (see below). The maximum loan size is always $10 million.

• If you were in business February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs during that time period. If your business employs seasonal workers, you can opt to choose March 1, 2019 as your time period start date. 

• If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020. 

• If you took out an Economic Injury Disaster Loan (EIDL) between February 15, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum.


What costs are eligible for payroll?

• Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)

• Payment for vacation, parental, family, medical, or sick leave 

• Allowance for dismissal or separation 

• Payment required for the provisions of group health care benefits, including insurance premiums • Payment of any retirement benefit 

• Payment of State or local tax assessed on the compensation of employees

Allowable uses of loan proceeds? 

• Payroll costs 

• Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums 

• Employee salaries, commissions, or similar compensations (see exclusions above) 

• Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation) 

• Rent (including rent under a lease agreement) • Utilities • Interest on any other debt obligations that were incurred before the covered period


What costs are not eligible for payroll? 

• Employee/owner compensation over $100,000

• Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code 

• Compensation of employees whose principal place of residence is outside of the U.S. 

• Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act


What are allowable uses of loan proceeds? 

• Payroll costs (as noted above) • Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums 

• Employee salaries, commissions, or similar compensations (see exclusions above) 

• Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation) 

• Rent (including rent under a lease agreement) 

• Utilities • Interest on any other debt obligations that were incurred before the covered period


What are the loan term, interest rate, and fees? 

For any amounts not forgiven, the maximum term is 2 years, the maximum interest rate is 1 percent, zero loan fees, zero prepayment fee (SBA will establish application fees caps for lenders that charge).


How do I get forgiveness on my PPP loan? 

You must apply through your lender for forgiveness on your loan. In this application, you must include: 

• Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings. 

• Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities. 

• Certification from a representative of your business or organization that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use. 


What happens after the forgiveness period? 

Any loan amounts not forgiven are carried forward as an ongoing loan with max terms of 10 years, at a maximum interest rate of 4%. Principal and interest will continue to be deferred, for a total of 6 months to a year after disbursement of the loan. The clock does not start again. 


Can I get more than one PPP loan? 

No, an entity is limited to one PPP loan. Each loan will be registered under a Taxpayer Identification Number at SBA to prevent multiple loans to the same entity.


Where should I go to get a PPP loan from?

Apply on our website and have an IFG advisor assist you with your funding request. 


Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program North Fork


Legal assistance with corporate documents needed.

Please contact the law firm, Lieb at Law P.C  for help with your Operating Agreement and Bylaws.


Please call 646-216-8009

info@liebatlaw.com

Documents Needed

Underwriting Documents Needed

Here is a shortlist of the items we believe we’ll need to process the SBA 7(a) relief loan:

  • Completed Application
  • Articles of Incorporation/Organization of each borrowing entity
  • Bylaws/Operating Agreement of each borrowing entity
  • All owners Driver’s Licenses
  • Payroll Expense verification documents to include:
  • IRS Form 940 and 941
  • Payroll Summary Report with a corresponding bank statement
  • If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with a corresponding bank statement, and,
  • Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.
  • 1099s (if Independent Contractor)
  • Certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States
  • Trailing twelve-month profit and loss statement (as of the date of application) for all applicants
  • Most recent Mortgage Statement or Rent Statement (Lease)
  • Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water