Update on SBA/PPP Loan Assistance

A couple continuing updates on SBA loans and the PPP program.


1. I know many banks have stopped accepting new applications for the Payroll Protection Program. Unfortunately, they were not prepared for the onslaught of applications they received on Friday and are now just trying to process what they have received. Check your bank’s website regularly (morning and evening) to find out when they will be accepting new applications for the PPP program. Some banks we work with, like Umpqua, have an email notification system you can sign up for. If you are banking with Umpqua and sign up for this notice, your personal customer representative in Napa is Paula Bernard.


2. All banks I have talked to are prioritizing their application process in somewhat the same following order: i. Current business account holders who have active lines of credit, ii. Current business account holders; iii. Current personal banking customers with active lines of credit; and iv. Current personal banking customers; and v. Everyone else. This might go without saying but your best bet for getting a PPP loan is by working with the bank with whom you have a business relationship and a line of credit. I mention this because some wineries may have local banks or credit unions (eg AmericanAg) they work with for their mortgage and have a business banking account tied to that mortgage, but may use a different bank (eg, Bank of America, Chase, Umpqua) for general AR / AP. In this case, working with your lender would be a better route for an SBA loan.


All banks I have spoken to are processing applications solely online.

3. Payroll companies like ADP have created a simple report that can be run to obtain the payroll information you will need to apply for a loan, the ADP report is super-easy to use. It includes IRS Forms 940 and 941 which you will need for your loan application. If you have a payroll company, I encourage you to login and download this report now so you have it on file when the time comes to apply for a loan.


3b. If you do not have payroll, but you have independent contractors that you pay regularly, make copies of your 2019 schedule 1040 (if ready) and back-up copies of your 1099 filings to substantiate your payroll costs. According to the Treasury website PPP fact sheet, Payroll costs include “For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.” I take this to mean your 1099 stubs will be accepted as proof of payroll, still waiting for confirmation on this fact.


4. ADP has a useful FAQ page on the PPP etc at:
https://sbshrs.adpinfo.com/covid19-cares-act?utm_campaign=COVID-19&utm_medium=email&_hsenc=p2ANqtz-_h8waI45F_p4W6cI1JEf032t76CkQeGDFTQLbqfmhaHhb_4CJcuO5ire2mK0_OQODJKPpXDdPibYJlZPbnbjlOknpyavKULSIbNsxPzhAMHk9vDJ8&_hsmi=85610738&utm_source=hs_email&utm_content=85610738&hsCtaTracking=4461c6fe-8141-403f-b816-bc4872fce203%7C132d55b5-ebea-460b-aaa7-a10aeea12c19


5. Personally I am a bit discouraged at the roll-out for the SBA/PPP loans thus far — its been a lot of starts and stops and not much else. I imagine we all feel that way. But we are going to try and stay on top of it and are here to help you in any way we can. The best advice I can offer now is to download the payroll reports you will need if you haven’t already done so, and/or put together copies of tax returns and all those 1099s. You can also find the SBA/PPP loan package below, which may be useful when you are ready to apply with your lender:

https://www.sba.gov/sites/default/files/2020-04/PPP%20Borrower%20Application%20Form.pdf