VeriCheck is offering our clients and partners added support in this uncertain time.
Through our partnership with Commercial Bank of California (CBC), a BauerFinancial Superior Rated and FDIC-insured bank, we are offering businesses relief as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The first batch of funds allocated to the CARES Act Paycheck Protection Program ran out in the first two (2) weeks of the funding period. But Congress and the President have now approved an additional $320 billion to revive the program with 100% federally guaranteed loans to small businesses to maintain their payroll during this emergency.
Disclosure: The information contained herein is for general informational purposes only and is intended as an overview. The program as described herein is subject to change or cancellation without notice and other material conditions may apply. This is not an offer to lend or otherwise extend a credit or loan of any kind and in no event shall it be construed as a binding agreement or contract of any kind or nature
Which Businesses Are Eligible?
- Business must have been operational as of Feb. 15, 2020
- A business with fewer than 500 total employees or that otherwise meets the SBA’s certain size standard
- A 501(c)(3) with fewer than 500 total employees
- An individual who operates as a sole proprietor, independent contractor, or is self-employed who regularly carries on any trade or business
- A Tribal business concern that meets the SBA size standard
- A 501(c)(19) Veterans Organization that meets the SBA size standard
What Are the Terms?
- Fixed rate of 1% with no pre-payment penalty
- Businesses are eligible for the lesser of 2.5x the average cost of monthly payroll incurred over the year ending 2019, not to exceed $10,000,000
- No payments for 6 months, although interest accrues during this time
- Loan is due in 2 years
- Only one (1) loan can be funded per business
NOTE: If you are a seasonal or new business, you will use different applicable time periods for your calculations.
What Can This Loan Be Used For?
- Payroll costs, including benefits (must be 75% or more to be forgiven)
- Interest on debt obligations, incurred before Feb. 15, 2020
- Rent, under lease agreements in force before Feb. 15, 2020
- Utilities, for which service began before Feb. 15, 2020
How Do I Define Payroll Costs?
For Employers: The sum of payments of any compensation with respect to employees that is:
- Salary, wages, commissions, or tips (up to $100,000 annually per employee)
- Benefits include vacation, parental, family, medical, or sick leave
- Allowance for dismissal or separation
- Payment required for the provisions of group health care benefits, including insurance premiums
- Funding of any retirement benefit
- Payment of state or local tax assessed on the compensation of the employee
For Sole Proprietors, Independent Contractors, and Self-Employed Individuals: The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than$100,000 in one year, as pro-rated for the covered period.
How Much of the Loan Can Be Forgiven?
The loan amounts will be forgiven as long as:
- Funds are used in the 8 weeks immediately following funding
- 75% of the loan is used for payroll costs (using the same definition above)
- The remaining 25% of the loan is used to pay debt obligations, rent or utilities
- You maintain your staff and payroll
If there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees, the amount of loan forgiveness calculated above is reduced. The loan forgiveness cannot exceed the principal.
NOTE: 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.
Inquire for a Paycheck Protection Program Loan from CBC
Get started by filling out the form to get the relief your business and employees need. We anticipate funds will run out again quickly, so we suggest your submit your information asap.
After you submit your information, the team will review it and contact you directly with next steps.
Please note that this is an inquiry for more information, not the formal application.
NOTE: VeriCheck is not a financial institution and therefore cannot make any decisions based on your eligibility for a loan or provide and funds. Any information submitted on our website will be shared with our partners at Commercial Bank of CA.