By Alan R. Sasserath, CPA, MS
I wish we were back in a time that when things changed from week to week it seemed like chaos. Now things change by the hour and I’m starting to get used to it.
Chase held a webinar this afternoon and while we did not attend, we understand that they said that they will not be ready to accept applications for the PPP loans tomorrow, Friday, April 3rd. From what we understand, TD Bank, Wells Fargo and Citibank have all said the same thing – that they too will not be ready to accept applications for the PPP loans tomorrow.
One of our clients, National Business Capital, says that they will be ready tomorrow to accept applications to the PPP. They are an agent for preferred SBA lenders. We expect that they will have their application page live and ready tomorrow morning. They also have a webinar at 1 p.m. to discuss what you need to know regarding the PPP and will have a live Q&A. Here is the link to register.
Additionally, Chase provided a workbook similar to our workbooks. We reviewed their workbook and noted that they include group health and other benefits in the calculation of average monthly payroll for those employees that earn more than $100,000 on an annualized basis. Additionally, they suggest using the trailing 12-month period from the date of loan to calculate the average monthly payroll required for the application. These are two of the issues we mentioned in our earlier email.
Below are the links to the most recent versions of our workbooks as well as the Chase workbook provided to those attending the webinar. Please note the following:
1. Because our workbook version 1.1 caps payroll costs, including group health insurance and other benefits at $100,000 per employee, it appears that is obsolete.
2. Version 2.0 caps wages and salaries at $100,000 and appears to be the workbook to use as it aligns with Chase’s calculations.
3. We put a lot of effort into the workbooks that we created. However, if Chase is going to accept their workbook along with the other requested supporting documentation with the loan applications, then that is what you should use if you are with Chase. Other banks will probably have their own version that they will want you to use. As stated above, we suggest using either the Chase workbook or our workbook 2.0 to estimate the loan amount until we know more.
One last item about the Chase workbook. It appears that Chase is treating this as they would any SBA loan. The amount of documentation requested is massive. Please see the relevant tab in the workbook. Please note that this may not be their final version nor final information request. We need to see the version of this workbook when they are ready to accept applications.
We will keep you updated as we have more information.
Please let us know if we can assist in any way.
As always, stay safe and healthy.
Click here for the Chase workbook.