April 1, 2020
Important Update Regarding PPP Loan Documentation
Dear EA Clients,
Over the past few days, we have received hundreds of requests from clients anxious to get the data they need in order to apply for a Paycheck Protection Program (“PPP”) loan.
In order to get the necessary data to all of you as quickly as possible, we are creating a standardized report that will contain all of the data you (and the bank) will need to calculate your loan amount.*
(*Please note—if you have a retirement plan or a benefits plan that is not administered by EA, you will need to add the data from those plans to the report that we send. Similarly, if you became an EA client after March 2019, you will need to combine our report with additional data from the time when you weren’t being served by EA.)
We will have this report in your hands by the end of the day on Thursday, April 2nd.
While the report we send will have all of the data you need for your loan (assuming EA has all of your data—see the * note above.), there is a reasonable chance your bank will ask you for more documentation. Right now, because the SBA has not given very clear guidance to banks on what documentation is required, each bank is playing a guessing game and coming up with their own list of required documents.
If your bank will not accept our standard report as sufficient documentation, please let us know, and we will work on compiling additional supporting documentation. However, please recognize that it is a very manual process and will likely take several days as we try to meet all of our clients’ needs.
Your bank may also request 941s. Please note that if you are in a co-employment (PEO) relationship with Employer Advantage, you do not have your own 941, as your payroll taxes are reported as part of EA’s 941. This is a known issue for all PEO clients across the country, and our national association is currently working with the SBA to make sure banks have clear guidance on how they should handle PEO clients. Rest assured that the SBA has worked with PEO clients for many years on SBA loans, and the SBA has confirmed that the PEO co-employment relationship will not prevent any company from receiving an SBA loan.
We appreciate your continued trust and patience as we work to support you during this unprecedented time.
The Employer Advantage Team