Paycheck Protection Program

Tidemark plans to accept Paycheck Protection Program loan applications through May 29, for both first loans and second ones. PPP loans can be forgivable under certain circumstances.

Tidemark Federal Credit Union is still offering PPP Loans through May 29 for first-time and second draws, the credit union announced this week.

“Despite news reports declaring the Paycheck Protection Program funds are almost exhausted, we understand that there are still a little under $9B in funds remaining in the $30 billion set aside for community lenders,” representatives said. “Our goal is to process as quickly as possible so that all of our borrowers get approved before the end of the month.”

A video explaining how to complete the application is available at https://players.brightcove.net/20782352001/HyFiY6bwz_default/index.html?videoId=6217165360001. The application portal is available at https://onlineapplication.wolterskluwer.com/ola/servlet/SmartForm.html?formCode=pppq&clientID=32560TidemarkFederalCreditUnion.

Businesses will need to calculate their average payroll before completing this application. They may use either 2019 or 2020 (full-year) for the calculations. Tidemark has provided a spreadsheet for calculating average payroll, in Excel format. Businesses only need to use this if they are switching to 2020 for their calculations. If using 2019, they can use the amount of their PPP Loan and divide by 2.5.

Eligibility requirements for second-draw recipients include:

  • Employ not more than 300 employees;
  • Have used or will use the full amount of their Initial PPP loan;
  • Have at least a 25 percent reduction in gross receipts in a quarter in 2020 relative to the same 2019 quarter;
  • For loans up to $150,000, the entity may submit a certification with the PPP loan application attesting the entity meets the revenue loss requirements;
  • Documentation may be required with a forgiveness application;
  • Businesses with multiple locations eligible entities for initial PPP requirements may employ not more than 300 employees per physical location.

For the supporting documentation required, businesses that are using 2019 will already have their documentation and can reuse it. Those using 2020 or that previously used a 12-month period ending on a different date than Dec. 31, 2019, will need to submit all documentation again. Tidemark can provide a list.

There are some changes in calculations:

  • Sole proprietor, self-employed — As an owner, sole proprietors and self-employed people will no longer be able to include benefit and retirement payments for themselves. They may include payments to any employees.
  • Partnerships — There is a slight change in the calculation of the partner’s income. It will now include a factor (see the Excel sheet for additional information).
  • 1099 wages: In the beginning of the original PPP program, some employers had 1099 wages included in the loan. The SBA later provided guidance that the individual independent contractor now has to apply for forgiveness.

Expenses paid with the proceeds of a PPP loan that is forgiven are now tax-deductible. This applies to both new and existing or prior PPP loans.

In addition to payroll costs, forgiven expenses now include worker protection costs, equipment for government-mandated sanitation and social distancing, property damage due to any public disturbances, and various software and cloud computing expenses.

The repeal of EIDL Advance Deduction from Forgiveness repeals section 1110(e)(6) of the CARES Act, which requires PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount.

The SBA will reimburse lenders for any EIDL Advance already excluded from forgiveness for us to return to the borrowers.

For more information, email businessservices@tidemarkfcu.org.