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Nonprofit Weekly Calls (Covid-19) - Shared screen with speaker view
Madeleine McGee
01:08:43
Include your EIDL application number in your email inquiry
Tatjana Beylotte
01:09:16
So both can be used for payroll as long as it’s not for the same period?
Madeleine McGee
01:10:50
Yes Tatjana
tim
01:10:56
For EIDL, if you are approved for $500,000, but you only end up needing $250,000, it's my understanding that you can request a deduction in the loan amount from the SBA is that correct? How likely is that reduction to be approved?
DavidGreen
01:12:38
On the PPP application, it asks you to take your average monthly payroll "x 2.5 + EIDL, Net of Advance (if Applicable)Equals Loan Request" - so EIDL advance is effectively part of your PPP funds application. Our board chair has been working with our bank who told us: "that first $10,000 gets deducted from any forgiveable portion of the PPP loan."
Laura Allen CCP
01:13:04
I was told the same as David Green
petercooper
01:14:00
Our organization received an SBA loan of $25K for disaster relief after Hurricane Matthew. Is there any provision in EIDL or elsewhere that part or all of this loan be forgiven?
Katie Zimmerman
01:15:24
My South State banker says they aren’t ready for PPP apps yet
DavidGreen
01:17:07
Here's what the SS Bank website says: "Please be aware although we have received interim final guidelines from the SBA regarding the Paycheck Protection Program, we continue to formalize our steps for processing applications. We are presently queueing interested customers and their supporting documentation in preparation for filing applications. If you are interested in submitting an application please call your banker or our dedicated Customer Care team at (844) 238-9452. We anticipate being able to process applications later this week."
Dana
01:17:34
On the PPP application, the question asked about the EIDL is only specific to dates between 1/31/2020 and 4/3/2020. If you haven't received an EIDL loan in that time period, you wouldn't deduct it from what I read.
Larry Finney
01:18:22
That is correct Dana from talking with SBA
Laura Allen CCP
01:18:23
Thanks Dana
Janie Lauve
01:19:17
How do independent contractors apply for the SBA loans?
Madeleine McGee
01:19:32
Optus Bank may be helping non customers - support@optus.bank
Hemophilia of South Carolina
01:19:56
If you ask for 2.5 times the amount of the payroll, etc, rent... and you use it all for the intended purposes and ask for the forgiven of the loan, what can you use the rest of the money for? Will that be forgiven- a little confusing..
Larry Finney
01:20:02
Under PPP there is a provision for independent contractors
Katie Zimmerman
01:20:15
Pinnacle says you don’t need an account. They would issue a paper check.
Joe Huggins
01:20:26
You have to open an account with the bank that you submit the PPapp with
Benjamin Bullock
01:20:31
Janie, 1099 folks can apply on their own, basing info on their 1099 documentation, using your SSN if you don't have an EIN
Janie Lauve
01:21:15
Thanks!
DavidGreen
01:21:30
Can we include contractor's pay in our payroll costs if we issued a 10999 to them?
Dean Hybl
01:22:42
what about if you are still paying the 1099 employee and they re working?
Janie Lauve
01:22:43
What if I don't have a 1099 yet?
Benjamin Bullock
01:23:02
For the PPP, it is expected that at least 75% would be used for payroll/benefits expenses(just about anything except for fed tax withholding) and 25% can be used for rent and utilities.
ernew
01:23:04
Our Executive Director, who is a contractual employee for us, was hired January 15th 2020. Therefore she does not have a 1099 from us. Can she still apply?
Laura Watts
01:23:16
Is the pastor's housing allowance considered as salary?
Hemophilia of South Carolina
01:23:29
I was told that if we have 1099 employees on our payroll monthly like a book keeper, webmaster, can't they be included in the loan ask?
kbarnett
01:23:44
I thought if PPP was used for payroll that loan would be definitely forgiven. Kevin said, a better "CHANCE" of being forgiven.
Laura Allen CCP
01:24:03
On PPP I was also told not to include 1099 contract workers
Benjamin Bullock
01:24:05
Forgiveness will have to be applied for later
Benjamin Bullock
01:24:30
It could be denied if you don't have sufficient documentation, or for other reasons
kbarnett
01:24:39
But is payroll usage 100% forgiven?
Laura Allen CCP
01:25:18
Can Kevin confirm, if 75% of PPP is payroll and 25% is rent, utilities, health insurance isn't it forgiven?
tammiehoy
01:25:19
yes if you can prove you used all the funds for payroll it can be forgiven
Benjamin Bullock
01:25:33
Health insurance is included as a payroll expense
kbarnett
01:25:48
Thank you Tammie.
Kevin Tomas
01:26:55
Forgiveness is allowed if at least 75% of the loan is used for payroll, so yes, you can use the other remaining portion of other expenses.
Benjamin Bullock
01:27:22
https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf
Katie Zimmerman
01:27:25
Does South State have a specific allocation?
Joe Huggins
01:27:43
number of employees is the driving force behind decisions...
Adam
01:28:08
For PPP-Are there any recommendations or best practices for properly tracking the use of these funds? What exactly the banks will need as documentation or is that different from bank to bank?
Benjamin Bullock
01:28:22
Included in Payroll costs: Cost of employee benefits consisting of group health care coverage, including insurance premiums, and retirement;State and local taxes assessed on compensation of employees (Not Federal tax)
Kevin Tomas
01:28:58
As long as at least 75% of the loan amount is used for payroll, the full amount may be forgiven, at this point, I am not sure who makes the loan forgiveness determination.
Laura Allen CCP
01:29:33
Our bank notified us last night with in 2 hrs of applying for PPP the funds we asked for were "reserved". WE have not taken a loan with our bank in the past, so we had to supply a ton of information. 3 yr audits, 990's and copies of all bills, payroll etc...
ernew
01:29:43
I am also assisting my son's business with the PPP loan. He had three employees until early April and he had to let two of them go. We are not sure if they will come back if we get this loan. So - can we apply for the payroll loan to cover the one employee left? Or do we have to apply for all employee costs and just not use that portion if the other two employees don't come back?
DavidGreen
01:29:48
Recommendation I heard on conf. call yesterday was to put PPP or EIDL loans in separate account for cleaner tracking of uses.
tim
01:31:25
Is it recommended that a dedicated bank account be opened to receive the PPP funds to more easily track expenditures from the account for documentation purposes regarding the forgiveness determination?
Lorie Boddie
01:32:49
DO I withhold the federal tax liability from the employees compensation?
Brandi (Together SC)
01:33:00
National Councils' Survey on applying for PPP: https://www.councilofnonprofits.org/tell-us-your-experience-the-getting-loan-through-the-paycheck-protection-program
Dana
01:33:01
Benjamin and Kevin, I read that while it's true you can use the PPP loan for benefit costs, the forgiveness of that loan is only applicable to payroll wages, not benefits. Have you heard otherwise?
Benjamin Bullock
01:33:16
Lorrie, yes Federal taxes should not be included in your calculation of payroll costs
Dean Hybl
01:33:50
We were told by our bank we had to use 2019 payroll, even though our 2020 payroll is higher due to two new hires.
Daniel Prohaska
01:34:22
Dean - We were told the same by our bank, BB&T. We're in the same situation.
tammiehoy
01:34:23
Dean, I think that is just based on your bank
Benjamin Bullock
01:34:24
Unfortunately, different banks may add different requirements for documentation
Benjamin Bullock
01:34:45
Because the SBA rules have left lots of room for interpretation
Forrest Alton
01:35:16
To Kevin Tomas' comment... we were asked for:
Forrest Alton
01:36:25
(cont, sorry) 1) copy of IRS form 941; 2) full 2019 report from our payroll services provider; 3) 2019 report showing costs paid for group health care coverage, insurance premiums, and retirement
ernew
01:38:08
This is Eileen (enew) from the Historic Port Royal Foundation that asked this earlier question:
Diane Luccy
01:38:30
Can Nate repeat his comment regarding, "Not every bank has a SBA Loan Program, and they would refer the request to ???" I couldn't hear Nate's total response...thanks!
Joe Huggins
01:38:59
Mad - would love more HR info
ernew
01:39:04
This is Eileen (enew) from the Historic Port Royal Foundation that asked this question about non-returning employees: I am also assisting my son's business with the PPP loan. He had three employees until early April and he had to let two of them go. We are not sure if they will come back if we get this loan. So - can we apply for the payroll loan to cover the one employee left? Or do we have to apply for all employee costs and just not use that portion if the other two employees don't come back?
Madeleine McGee
01:40:01
Nate said that they contract out their SBA loan management to a third party bank - You still need to work through your SS contact.
tammiehoy
01:41:35
Eileen, I believe you need to rehire people within a certain time but Larry may know more
Sue Berkowitz
01:41:37
how to do supervising of staff remotely
Dean Hybl
01:42:07
I agree with Sue. Supervising staff remotely.
Laura Allen CCP
01:42:14
Sue- I am doing Zoom meetings (free for 40 minutes) 3x a week
Larry Finney
01:42:14
Yes, you need to rehire people to get PPP money for them and have it forgiven
tammiehoy
01:42:19
Housing Policy in SC to respond to state housing needs
Brandi (Together SC)
01:42:27
Dean & Sue. Great topic idea! We're on it!
Katie Zimmerman
01:42:38
Thank you these resources, Together S.C.!
tim
01:42:41
Topic -- Operational Realities in the COVID-19 Environment; prolonged social distancing, lower volunteer engagement, reduced funding, safety and sanitation guidelines
Laura Allen CCP
01:43:13
These calls are great! Thank you Together SC! GLad to be a member.
Cara Senterfeit
01:43:26
I second what Tim says.
Diane Luccy
01:43:34
Safety and Sanitation Guidelines. Thank you for this virtual session!
Brandi (Together SC)
01:44:16
Diane & Tim - GOt your topic noted. Thank you!
Najmah
01:44:23
Super thanks TogetherSC - so glad we joined!
Daniel Prohaska
01:44:34
Topic - Board recruitment during a crisis/pandemic
Pam Benedict
01:45:01
Thank you all, this is great info!
Cara Senterfeit
01:45:06
Thanks!
tamaraherring
01:45:09
Thanks!
Brandi (Together SC)
01:45:12
We will send out a follow up email by this Friday from this call. It will include resources & invite for next meeting!