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SBA Paycheck Protection Program

  • 1.  SBA Paycheck Protection Program

    Posted 04-04-2020 17:09
    I've received several questions about eligibility and experiences with the SBA's Paycheck Protection Program, which became available yesterday as part of the CARES Act.  It is intended to provide forgivable loans to support payroll and other qualified expenses for businesses smaller than 500 people.  Applications are made through SBA-affiliated banks. Does anyone have information or experiences to share with colleagues in other firms?  Stay well...

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    Clark Davis FAIA
    Principal Consultant
    Cameron Macallister Group
    Saint Louis MO
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    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 2.  RE: SBA Paycheck Protection Program

    Posted 04-06-2020 17:25
      |   view attached
    There's a ton of information floating around. Our local LGBT Chamber shared the attached comparison. Best bet however is to talk with your banker to see what they are doing, if they are participating, and if not who they recommend you reach out to.

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    Lawrence Paschall AIA
    President/CEO
    Spotted Dog Architecture
    Dallas TX
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    Attachment(s)

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  • 3.  RE: SBA Paycheck Protection Program

    Posted 04-06-2020 17:46

    I have been personally going through the process since last Wednesday. Originally I started with Wells Fargo,since the bank I have my business accounts with is not an SBA bank. A day into it, Wells Fargo told me that the legislation stated the borrower had to have a business checking account with the bank as of February 15th or else the borrower could not go through that bank so I could not apply through Wells Fargo as I only had personal accounts with them.

    I could not believe this was true since it would leave so many small businesses, especially those that banked with smaller local banks, out of the entire program. I reached out to the small business liaison at both my Congressman and Senator's offices and they assured me this was a mis-reading of the legislation,that a business needed to BE in business on February 15th to be eligible. Armed with that information, I was able to work with another local bank who was willing to take my application.

    The application itself is quite simple but all of the calculations/back up documentation for my firm was done by my accountant who also runs our payroll. You need payroll, healthcare payment and retirement account payment information for 2019. We submitted our completed application just this afternoon. In the meantime Wells Fargo had sent me a generic email stating they were holding off a few days before accepting any applications,awaiting some clarifications from the government. I cannot verify this but I had heard on one of the financial shows that some large banks are waiting on processing any of the loans because they believe the legislation is unclear as to when  portions of the loan are forgiven, who is taking the financial loss of the forgiving, the bank or the Federal gov. Note the loan is intended to be used for payroll, rent/mortgage or similar expenses of running a firm. The intent is to keep folks employed. You will need to have documentation of how the money was spent to get the forgiveness.

    I will update my post as the process continues. Good luck to all, these times are potentially incredibly difficult for firms but this programs seems like it could be a huge help.



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    [ Nea May] [Poole] AIA
    [Principal]
    [Poole & Poole Architecture, LLC]
    [Midlothian, ] [Virginia]
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    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 4.  RE: SBA Paycheck Protection Program

    Posted 04-06-2020 18:26
    Our firm had a.couple of projects go on hold and we were discussing furloughs,  but when we dived into CARES, we discovered that we can keep staff employed and working on overhead and marketing tasks that they may otherwise have not been given a green light to perform, but the catch is, all timesheet entries and the direction given by management must show a clear reason and work requirement. We can't just have people charge to an overhead number without documentation.  We are working on a standard for how staff are to log these hours that the firm will be looking for reimbursements through the grant.

    Alan Wieskamp, AIA
    Group Leader
    Shive-Hattery, Inc
    AIA Iowa SLGN Liason



    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 5.  RE: SBA Paycheck Protection Program

    Posted 04-06-2020 18:42
    Alan, Thanks for your information.  We are also in the same boat, we had a couple contracts go on hold.  The "catch" you described, is that part of the new policy or is that an in internal decision to document all overhead tasks?

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    Michelle Diaz
    Principal
    Arrington Watkins Architects
    Phoenix AZ
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    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 6.  RE: SBA Paycheck Protection Program

    Posted 04-06-2020 20:27
    Our HR department is telling us younger staff needs to have documented direction and specific tasks and their timesheets or however you record billable hours, needs to have comments of what they worked on. And the directives should match their "billing" comments for them to "count".

    We were told this is documentation our firm needs in order to claim the current no interest loan as a future grant, (no repayment of loan) for the hours and resulting billable hours and income from any staff who may have been at risk of furlough.

    That is how we are proceeding anyway.



    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 7.  RE: SBA Paycheck Protection Program

    Posted 04-07-2020 18:19
    I hope someone can confirm or refute this. It seems to fly in the face of its purpose. If we had clients and hours to bill we wouldn't need the loan.

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    Thomas Nychay AIA
    Gant Nychay Architecture
    Seattle WA
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    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 8.  RE: SBA Paycheck Protection Program

    Posted 04-07-2020 17:39
    All - the concern that all staff time must to be tracked and noted on time logs (SOP for most of use) would only apply to the professional services industry.  Mnuchin said today in an interview the goal of the program is to continue to pay staff even if the business is under a mandatory shut down such as a restaurant or retail operation.  Those employees are all overhead and do not enter time other than punching a clock.

    It is a safe bet to have staff enter details of their tasks, now and always, but it does not seem this is a prerequisite to loan forgiveness.

    Two cents.
    Steve

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    Stephen Maher AIA
    MJM Architects
    Nashville TN
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    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 9.  RE: SBA Paycheck Protection Program

    Posted 04-06-2020 21:29
    ​I completed my application and submitted last Friday, approval came through yesterday evening. You have to have been in business prior  Feb 15, doesn't matter if you had a checking account then. The application is simple and straightforward. Wells Fargo seems not to be too interested in helping with this, go t a smaller bank or other preferred SBA lender. If you're in business, this virus has affected you. In my case two nice projects went on hold and I cannot market effectively at present, neither can you. Be tenacious and get the forms filled out. There is a large pool of money but it will evaporate quickly so you need to get in and get approved so that your funds are ear marked. Once your approved by SBA your lending institution will need a bit more time to process the loan paperwork due to demand. The application is available on the SBA website or through your Bank. First things first, get that application and supporting paperwork submitted!
    -Good luck to all, stay home and stay safe!!!

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    Michael McCoy AIA
    Owner
    MJMC Architects, PLLC
    Farmers Branch TX
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    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 10.  RE: SBA Paycheck Protection Program

    Posted 04-07-2020 08:02
    We contacted our banker in advance to inquire whether our bank planned to participate in the program; they weren't able to provide a specific answer but directed us to sign up for a mailing list. They posted their on-line application on Saturday 4/5, and we completed and submitted it with back-up yesterday. 
    Loans are being given on a first-come first-served basis so time is of the essence. I believe most banks are limiting applications to companies they already have a banking relationship with. We are supposed to get a confirmation email but haven't yet seen it - hoping we weren't too late.

    Mary Holland AIA, LEED AP BD+C  |  P R I N C I P A L
    CICADA Architecture/Planning, Inc.
    PHILADELPHIA, PA 19102  .   

    Virus-free. www.avast.com



    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!


  • 11.  RE: SBA Paycheck Protection Program

    Posted 04-07-2020 08:05

    We applied last Friday and were able to get approval on Saturday for the full amount of our company's 8 week payroll.

    We have yet to learn when these funds might actually be deposited .

     

     

    Chip Desmone, AIA, LEED AP

    Principal

    DESMONE ARCHITECTS

    3400 Butler Street

    Pittsburgh, PA 15201

    ph.  412.683.3230 x232

    f.    412.683.3563

    c.    412.889.3374

    linkedin | website | facebook | twitter | instagram

     

    Best Places to Work in Western PA. 2019 (12 years !)

     

     




    Open: Call for applications deadline November 6. Learn more and apply to join the PMKC leadership!