You probably were looking at the Paycheck Protection Program today. Our bank, Wells Fargo, has no information yet regarding application for the loan. We heard from Chase Bank that their website for such application is expected to be up by Friday.
Two accountants have confirmed that the Paycheck Protection Program loan begins on the day of origination of the loan. Ultimate forgiveness of the loan is said to occur when applied to basic expenses for the practice (i) payroll costs, (ii) costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums, (iii) employee salaries, commissions, or similar compensations, (iv) mortgage interest payments (but not any prepayment of or payment of principal on a mortgage obligation), (v) rent, (vi) utilities and (vii) interest on any other debt obligations that were incurred before the Covered Period.
Unless there is a change by the Department of Labor, who is developing the guidelines for the loan, then the forgiveness part of the loan, where the bank forgives that part of the loan that is applied to the above, will not apply to salaries and expenses that occurred before the date of origination of the loan.
If you have not done so already, furloughing your staff may be the best option both for you and for them because of the additional benefits provided to them by unemployment at this time.
The Florida Unemployment Bureau’s website was so busy last night at 9 PM that we couldn’t get on it. However, at 2 AM, I can now get on the site. If your staff is having difficulty getting on to the site during the day, they may want to get up in the middle of the night to submit their unemployment application.
We will get through this and flourish.