FOR BUSINESSES: ‘Paycheck Protection Program’

| Coronavirus | West Seattle businesses | West Seattle news

We’ve seen an avalanche of resource links for potential economic assistance related to COVID-19-ordered business closures and layoffs. If you have a business, Casie emailed to recommend a look at the Paycheck Protection Program. She suggested that we “remind small businesses in West Seattle to take advantage of the PPP program which is scheduled to start this Friday. This is the program that funds the payroll, rent and utilities of small businesses who have been impacted by the pandemic for up to 8 weeks. So many of us depend on our small businesses and I hope they and their employees can get some relief through this program.” The infopage describes the PPP as a Small Business Administration “loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.” Thanks to Casie for the note. (The West Seattle Junction Association and WS Chamber of Commerce also have been sharing resource info with their members, so if you’re on their lists, be sure to read the emails!)

Aldaris April 2, 2020 (9:38 am)

Small business owners must be very careful using the delayed deposit program and only apply after a complete consideration of the long-term effects. The CARES Act provides special delayed payment relief for a portion of certain payroll taxes, but DOES NOT provide a permanent reduction or forgiveness of the liability. Moreover, there is no relief for Medicare @2.9%, employee FICA @ 6.2%, or Federal withholding. Until further guidance is released from the IRS, it is imperative small business owners speak with their accountants about the PPP program first before hastily applying for the program.

David April 2, 2020 (9:55 am)

This.
Accountant April 2, 2020 (12:45 pm)

The PPP program is a separate loan program which is being administered by the Small Business Administration. If certain provisions are met, the loan can be forgiven in full. This program does not have a payroll tax credit feature to it.An alternative to the PPP loan program is a “retention credit” which can be used against the 6.2% social security tax, or advanced by the IRS, if payroll tax offsets prove insufficient to claim the full credit. This credit is allowed for businesses impacted by the covid-19 pandemic who manage to keep their employees on payroll without the assistance of the SBA PPP loan program.You can do the PPP or get the retention credit, but not both.Additionally, there is another paid sick and family leave credit available to assist small businesses who are required to pay sick and family time.Any small business owner needs to be in communication with their accountants / CPAs to figure out what applies to their business and the best path forward.

kikim8 April 2, 2020 (11:18 am)

Here is a link for borrowers to a information sheet about the loan program.https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf

Robin April 2, 2020 (7:33 pm)

Does anyone know a local provider for the Paycheck Protection Program? My local credit union does not. Thanks!

Accountant April 2, 2020 (9:13 pm)

I know Columbia Bank is handling these loans
Laura April 2, 2020 (10:27 pm)

I’m working with US Bank.

Jacob Smith April 3, 2020 (12:12 am)

Shameless self promotion. My company usually does event registration, so you can imagine we have been hard hit. We will be applying for PPP and have also started a service to provide help to other small business. You can find out more here: https://www.coronavirusassistanceprogram.com/Completely agree that you should talk to your accountant to find out if this is right for you, but if it is and you want some help along the way, check out that link.

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