COVID-19 Disaster Relief
Our hearts go out to those affected by the COVID-19 virus, which has affected businesses all over the world. As we navigate this uncertain time together, we want you to know that MaxCap Solutions remains open and available to assist you. Below you will find information on the Paycheck Protection Program (PPP).
SBA7(a) loan forgiveness:
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Loan forgiveness may be reduced if:
Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount
Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019
Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020
In order to request loan forgiveness:
A small business can submit a forgiveness request to its lender that is servicing the loan
Request should include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations
Certification that the documents are true and that the business used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments
The lender must make a decision on the forgiveness within 60 days
Starting April 3, 2020, small businesses and sole proprietorships can start applying.
Starting April 10, 2020, independent contractors and self-employed individuals can apply. There is a funding cap, so it is in the small businesses best interest to apply as quickly as possible.
Aside from the application, a small business will need to provide its lender with payroll documentation
Please keep in mind that there is a high demand for funding through the PPP program. Your application is not a guarantee, but we will do everything we can to help you get approved and funded as fast as possible.
To begin your application please click here.