The restaurant owner must read the blue words above to follow

Many catering owners across the United States have successively received SBA loans. Yesterday, our [7th Session of the Private Dining Sharing Session] online free Chinese lecture specially invited Wenda Yee, the commercial loan manager of Fanyu Group, to introduceHow to regulate the use of these loans,as well asA series of questions about the new PPP exemption policyAnswer.

 

Boss friends who have not come to attend / listen to the lecture notes and did not write them down, please read the main points of this article carefully.For the first time to understand the North American catering industry information, please continue to pay attention to our public number!

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New Deal Key Points for PPP Loan Repayment

PPP loans fromSince its introduction in March, it has helped nearly 3 million small businesses or merchants across the United States.New policy recently launchedwillSignificantly relax the PPP loan exemption rules. Include the following key contents:

 

• The proportion of loans that must be used for employee salaries will be reduced from 75% to 60%;

• The remaining 40% can be used for non-payroll expenses;
  

• 贷款覆盖期从8周延长至24周，或到12/31/2020；

• 必须雇佣回与疫情发生前数量一致员工的时间节点从6月30日宽限到2020年12月31日；

• If the loan cannot be waived, the repayment period is extended from 2 years to 5 years;It will be paid back 6 months after the coverage period has been extended, and it will be extended to 10 months.

Calculation method of PPP loan repayment amount

 

Waiver amount = Salary cost (at least 60% of total loan) + Non-salary cost (maximum 40% of total loan) – EIDL Advance

PPP loan coverage period is24 weeks after receiving the bank loan.If it is salary cost, it is24 weeks from the first payday after receiving the bank loan.

贷款的至少60%必须用于美国境内的员工薪资福利，最多40%用于2020年2月15日前存在的合同在覆盖期内的非薪资成本。

 

01

Salary costs (at least 60%)

• Wages, commissions, dangerous wages, bonuses, tips, etc.

• Annual leave, paid leave, paid sick leave

• Payroll tax, state tax, local tax

• Group medical insurance, pension

If a restaurant owner has paid himself before, he can also include his labor in the salary cost. However, it should be noted that the upper limit of each employee cannot exceed 10 US dollars per year.

02

Non-payroll costs (up to 40%)

• Payment of interest on commercial mortgage debt (principal cannot be counted)

• Shop rent or lease payment

• Water, gas, transportation, telephone, internetfee

• These refer to the fees to be paid during the coverage period for contracts that existed before February 2020, 2

Calculation method of FTE (equal full-time employees)

There is a very important concept in the PPP exemption application FTE (Full Time Equivalent) , This number is different from the algorithm for employee benefits. In the calculation of employee benefits, as long as the working time exceeds 30 hours per week, it is counted as a full-time employee. butFTE counts employees who work 40 hours per week as 1 and employees who work less than 40 hours per week as 0.5.

For example, a restaurant has 5 employees working 40 hours a week, and 8 employees working less than 40 hours, then the FTE of this restaurant is 9.

In the PPP loan exemption application, theThe average FTE during the coverage period is compared with the monthly average FTE before the outbreak，可选择的参考期为去年的2月至6月或今年的1月、2月；季节性雇主还可以选择去年的5月到9月。It is recommended that you choose to compare with this year's data to find documents.

If the number of FTEs in your coverage period is less than the number of FTEs in your reference period, the amount of exemption may be reduced. butAs long as the employees are invited back before December 2020, 12, it will not be affected.

Documents to be prepared for PPP exemption application

Some of these documents were already submitted when applying for loans, butIt is recommended that catering owners submit the application for exemption again to speed up the approval process.

 

Prove your salary expenses:Bank bills, third-party compensation service providers' cash compensation reports to employees, tax forms, state quarterly wage reports, unemployment insurance tax returns, receipts for medical insurance receipts, etc.;

 

Prove your FTE number:Tax forms, state quarterly wage reports, and unemployment insurance tax returns, etc. (to reflect the comparison between the average number of monthly FTE employees hired during the coverage period and the average number of monthly FTE employees hired during the reference period);

 

Prove your non-payroll expenses:Receipts for commercial loan payments, bills starting in February 2020, commercial lease contracts, bills, receipts for payment of water grid gas, etc.

Important time node for PPP exemption application

If you have spent the loan before the end of the year, you can always submit an application for repayment with your borrowing institution.

 

• Within 60 days after receiving the borrower's waiver application, the bank will notify the SBA of the waiver amount;
• SBA will allocate this amount within 90 days;
• The borrower needs to keep all documents 6Years so that SBA can check the accounts

PPP repayment period extended

 

If your loan application fails to repay, or requires partial repayment, the current new policy extends the repayment period from 2 years to 5 years.For new loans approved after June 6, the repayment period will be automatically extended; if it is a previously applied loan that wants to extend the repayment period, you need to apply separately.

As for the time to start repayment, it also changed from 6 months after the original coverage period to 10 months.

 

 

EIDL loan use

 

Wenda also reminded the owners about the purpose of the EIDL loan. The fees existing before January 2020, 1 can be paid with EIDL.Including rent, wages, accounts payable, utility bills, debt interest, etc. However, it cannot be used for refinancing, tax fines, expansion costs, dividends or bonuses.

 

PPP loans and EIDL loans are mainly paid attention to,Can't report the same expense repeatedly;If the PPP loan is received in June, the fees for April and May cannot be paid with PPP, and can be paid with EIDL.

 

During the lecture, the bosses actively asked questions. Due to the limitation of this article,For complete lecture materials and the contact information of the presenter, do not miss the next lecture, please add customer service consultation!

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About "North American Meal Exam News"

"North American Meal Exam News" is the sister number of the North American head gastronomy new media "Eating Food Team". It aims to serve North American Chinese food and beverage practitioners and is committed to building a professional service platform for the North American food and beverage industry. We hope to promote the two-way exchange of Chinese and American catering culture, support Chinese food to go overseas, and serve overseas brands in China.

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