SBA Paycheck Protection Program

4.03.2020 — LISC StoriesInvestments

Important information regarding the CARES Act's SBA Paycheck Protection Program, including how it can be used in LISC communities.

The Paycheck Protection Program is designed to keep your workers on payroll and your doors open. If employees are kept on payroll for eight weeks, the SBA will forgive the portion of your loan used for payroll, rent, mortgage interest and utilities. Loans can be up to $10 million and up to 100 percent forgivable.

Final guidance on the program is still in process, including participating lenders. Our affiliate, immito, is an approved SBA 7(a) lender. We anticipate making a decision on whether we will be able to provide financing through this program within the next week. LISC is committed to ensuring our partners are able to take full advantage of this program once operational and will be providing updates on the program and application process as they emerge.

A sample application is now available through the US Small Business Administration and US Treasury. In order to prepare your application, LISC recommends you begin collecting necessary documentation and triple check your application before you submit to an SBA approved lender. At this time, we are recommending gathering the following documentation:

2019 IRS quarterly 940, 941 or 944 payroll tax reports
Last 12 months of payroll reports beginning with your last payroll date, including the following:
- Gross wages for each employee, including the officer(s) if paid W-2 wages
- Paid time off for each employee
- Vacation pay for each employee
- Family medical leave pay for each employee
- State and local taxes assessed on the employee's compensation for each employee
- 2019 1099s for any independent contractors that would otherwise be an employee of your business (excluding 1099s for services rendered)
- Documentation showing the total of all health insurance premiums paid by the company owner under a group health plan for all employees and owners
- Documentation of the sum of all retirement plan funding paid by the company owner (excluding monies that came from the employees' paycheck contributions). This includes 401K plans, Simple IRAs, and SEP IRAs.

Where possible, your payroll vendor may be able to assist you gathering documentation.

Additional information on the program will be updated as available at lisc.org/ppp. For any questions, email LISC at paycheckprotection@lisc.org.

Additional Resources

Below is a list of common resources to help you with your Payment Protection Program loan request:

To learn more about LISC’s response to the pandemic, visit our dedicated COVID-19 web pages.