How to Apply for a Loan to Help Your Small Business

The following information is provided compliments of

Meadows Urquhart Acree & Cook, LLP

The impacts of the virus haven’t affected all industries equally to this point. Think about it - the slowdown of projects for many businesses may not occur in the next week or even month, but undoubtedly there will be some backlash.

Company cash flow may be in a healthy position currently, but new projects may be delayed, materials may not be available and collections will certainly be extended. How can you extend your cash to last? We are recommending two immediate actions:

  • Talk to your trusted advisors about new legislation that could provide cash flow in the form of tax credits or loans and

  • Project your worst, best and most likely cash flow scenarios over the next 3 months.

We’ve developed a free cash flow tool that could help you in this process. Click HERE to request the tool. We’re all in this together; in times like this relying on trusted advisors is one way to alleviate some of the stress.

While we are currently awaiting further clarification from the SBA regarding the Payroll Protection Program, we are recommending that our clients gather the following documents which will likely be needed in the calculation of the loan value.

  1. 2019 IRS Quarterly 940, 941 or 944 payroll tax reports.

  2. Last 12 months of Payroll Reports beginning with your last payroll date and going backwards 12 months.

  3. Payroll report must show the following for the time period above:

  4. Gross wages for each employee, including the officer(s) if paid W-2 wages.

  5. Paid time off for each employee.

  6. Vacation pay for each employee.

  7. Family medical leave pay for each employee.

  8. State and Local taxes assessed on the employee’s compensation for each employee.

  9. 1099s for 2019 for independent contractors that would otherwise be an employee of your business.

  10. Do NOT include 1099s for services.

  11. Documentation showing total of all health insurance premiums paid by the Company Owner under a group health plan.

  12. Include all employees and the company owners.

  13. Document the sum of all retirement plan funding that was paid by the Company Owner (do not include funding that came from the employee’s out of their paycheck deferrals).

  14. Include all employees, including company owners.

  15. 401K plans, Simple IRA, SEP IRAs.

Lastly, we have broken down the differences between the many payroll resources available to employers HERE.


The following information was provided by NFIB

SBA Coronavirus Loans

(Paycheck Protections Program/Loans)

Who is Eligible?

  • Businesses of 500 employees or fewer, businesses within the SBA small business size threshold, self-employed individuals (sole-proprietors and independent contractors), and accommodation and food services businesses (NAICS Code 72) with 500 or fewer employees per location and less than $500 million in gross annual receipts in 2019, any business assigned a franchise operator code from, and any business that receives assistance under the Small Business Investment Act.

  • If you had employees, you had to have been in business on 2/15/2020 and paid taxes on your employees or paid independent contractors.

  • All applications must certify the following: The uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient. Acknowledging that funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.

What Can You Use the Loan On?

  • Payroll costs - Which include salary or wages, family and sick leave, allowance for dismissal or separation, health care benefits, retirement benefits, payment of state and local tax assessed on the compensation of an employee, the sum of payments to an independent contractor. Salaries in excess of 100k are not covered, compensation of employees outside of the US are not covered, and sick or family leave where a payroll tax credit is already taken are not covered

  • Payments on a mortgage obligation

  • Rent

  • Utilities

  • Interest on any other debt obligations that were incurred before 2/15/2020.

  • The loan can only be used on these expenses incurred between 2/15/2020 and June 30, 2020

Where Do You Get the Loan?

  • Loans would be available immediately through more than 800 existing SBA-certified lenders, including banks, credit unions and other financial institutions, and SBA would be required to streamline the process to bring additional lenders into the program.

  • The Treasury Secretary would be authorized to expedite the addition of new lenders and make further enhancements to quickly expedite delivery of capital to small employers.