Covid-19 Update March 28, 2020
GreenEarth’s Guide to the CARES Act

As you know, this past Friday, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act that is meant to assist business owners as soon as possible. The bill provides for over $2 trillion in funding and is long and complex.

The bill contains many provisions, including Individual Stimulus Payments, Small Business Loans, Emergency Government Disaster Loans And Grants, Expanded Unemployment Benefits, Depreciation for Qualified Improvement Property, Retirement Funds for Coronavirus Costs, Exclusion of Income of Employer Payment of Employee Student Loan Debt, Employee Retention Credit, and other assistance in various forms.

However, for our GreenEarth Affiliates, we believe the most important portion of the CARES Act is the Payment Protection Program (PPP) Loans.  Therefore we want to focus on the Payment Protection Program and provide you with some very specific details that we trust are helpful to you.

The PPP Program is designed to provide you with cash-flow assistance via 100% federally guaranteed loans for employers who maintain their payroll during this emergency. If you as the employer maintain your payroll, the loans you receive would be completely forgiven. 

The Program has several attractive features, such as forgiveness of up to 8 weeks of payroll (based upon employee retention and a cap on salary levels), no SBA loan fees and at least six months of deferral with deferrals up to one year. You would be eligible to apply if you were damaged by the coronavirus between February 15, 2020 and June 30, 2020. The Program is retroactive to February 15, 2020 in order to help bring back workers who may have already been laid off.  Loans are available through June 30, 2020.
Here are the questions we believe you may have along with the answers we understand to be true:

Q. What types of businesses and entities are eligible for a PPP loan?

  • Businesses in operation on February 15, 2020.
  • Small businesses with fewer than 500 employees.
  • Individuals who operate as a sole proprietorship.

Q. How is the size of the loan determined?

A. Depending on your situation, the loan size will be calculated in different way. The maximum loan size is always $10 million. 
  • If you were in business February 15, 2019 – June 30, 2019: Your maximum loan is equal to 250 percent of your average monthly payroll costs during that time period. 
  • If you were not in business between February 15, 2019 – June 30, 2019: Your maximum loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 – February 29, 2020.

Q. What costs are eligible for payroll?

  • Compensation (salary, wage, commission, or similar compensation).
  • Payment for vacation, parental, family, medical, or sick leave.
  • Allowance for dismissal or separation.
  • Payment required for group health care benefits, including the insurance premiums.
  • Payment of any retirement benefit.
  • Payment of State or local tax assessed on the compensation of employees.

Q. What costs are not eligible for payroll?

  • Employee/owner compensation over $100,000.
  • Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code.
  • Compensation of employees whose principal place of residence is outside the U.S.

Q. What are allowable uses of the loan proceeds?

  • Payroll costs as outlined above.
  • Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums. 
  • Employee salaries, commissions, or similar compensations (see exclusions above).
  • Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation).
  • Rent 
  • Utilities
  • Interest on any other debt obligations that were incurred before the covered period.

Q. What are the loan term, interest rate, and fees?

A. The maximum term is 10 years, the maximum interest rate is 4 percent, zero loan fees, 
    zero prepayment fee (the SBA will establish application fee caps for lenders that charge).

Q. How is the forgiveness amount calculated?

  • Forgiveness on a covered loan is equal to the sum of the payroll costs as described below incurred during the covered 8 week period compared to the previous year or time period.
  • Payroll costs plus any payment of interest on any covered mortgage obligation plus any payment on any covered rent obligation plus any covered utility payment.

Q. How do I get forgiveness of my PPP loan?

A. You must apply through your lender for forgiveness of your loan. In this application, you 
    must include:
  • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings.
  • Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.
  • Certification from a representative of your business that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use.

Q. What happens after the forgiveness period?

A. Any loan amounts not forgiven at the end of one year are carried forward as an ongoing
    loan with a maximum term of 10 years at 4% maximum interest. Principal and interest will 
    continue to be deferred, for a total of 6 months to a year after disbursement of the loan. 

Q. Can I get more than one PPP loan?

A. No.

Q. What kind of lender can I get the PPP loan from:

A. All current SBS 7(a) lenders are eligible lenders for PPP. 

Q. How does the PPP loan coordinate with SBA’s existing loans?

A. Borrowers may apply for PPP loans and other available SBA loans with no penalty.
We trust this information is helpful to you as you consider the PPP loan program that is available as a result of the CARES Act. Please let us know if you have any questions or if we can be of help to you in any way reach out to Customer Service Director, Karen Maxwell, at or 816-926-0896..
Have you missed anything? 
Please see these past messages regarding Coronavirus
and what GreenEarth is doing to help.

March 19, 2020 -  Employee Compensation
March 17, 2020 -  Modified Productions Schedules