Update to the PPP Loan Application
We are aware that some lenders are requiring 941s for Payroll Protection Program (PPP) loan applications, even though the Interim Final Rules (IFR) issued by the Small Business Administration (SBA) do not require tax documents, including Forms 941, to verify payroll amounts for PPP loan purposes. Our industry lobby organization with the assistance of the SBA have drafted a more specific letter, attached to this email, making this point completely clear for you to use with your lender.
Please be patient with your lenders and note that many underwriters/bankers are not aware or understand the Professional Employer Organization (PEO) relationship. Please be advised that the PEO industry lobby organization works very closely with the Small Business Administration, Department of Labor and the Internal Revenue Service and are extremely supportive of PEO’s as they realize what a valuable service PEO’s provides for small and mid-size businesses.
As I stated above, many do not understand the PEO/Client Employer relationship, therefore please feel free to give a copy of this email, with my permission, to any lender/banker, I will be more than happy to speak with anyone to answer any questions, concerns and explanations.
Please stay safe and healthy, do not hesitate to contact us, we are here to support and assist you in any way possible until we all get through this unprecedented situation.
Maureen Ciarolla
CFO
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