How Do I Sign Kentucky Banking Form

Industry sign banking kentucky presentation later

my name is sarah vanover and i'm the director for the division of child care many of you i have met before or gotten to speak with before um most of you know that in the additional round of federal funding federal aid that's coming out to support us through the covet 19 crisis that there are going to be additional paycheck protection program loans forgivable loans and the division of child care wants to help educate our child care providers because this is an opportunity that you can easily take advantage of however my division of child care staff are not experts on tax processes on on banking and so we've brought in some help today we have asked erica horn who is with dean dorton she is a cpa and a tax associate director for dean dortmund in lexington and she has agreed to give us a presentation on the process of the ppp program and then we are going to have some questions and answers at the end while we are offering this um presentation while erica is presenting her presentation if you would like to ask questions in the chat then we will go through some of those after her presentation is complete so that you have the opportunity to have some of your questions answered and um so i'm i'm going to turn things over to erica she's going to um share her screen for her presentation we have heard that she has old hat at this since january 5th i think she has since beginning of january she's given this presentation four or five times um so so it'll just roll off the tongue here as far as the the information that she's gonna provide um so i'm gonna turn the the floor over to her but thank you so much erica for joining us today you're welcome thank you and thanks to all of you for joining kayla can you do the screen share uh i'm not sure i'm coordinated i mean i am coordinating enough yeah it comes to it but let me for those of you whose pictures include babies or you have babies and you and i can see them all i want to do is kiss them so um you can stick them up there i play this game with my granddaughter on facetime um and uh she keeps saying yeah yeah you can't get me but uh i just keep trying number ones so my name is erica horn i'm a cpa i'm also a lawyer don't hold it against me um and uh i tease often that uh the folks who wrote this law and especially the regulations related to this law the only thing they know about payroll is that they get it uh likewise about the only thing i know about child care is that you all do it and it might be that the only thing that you all know about uh paycheck protection program loans is it something that you might have heard about in the news and it sounds too good to be true um if you want to let me know if you have already gotten what we call a first round paycheck protection program loan you can put that in the chat um or if this will be your first shout uh your first um your first entree into uh instagram so while um kayla gets those slides up they're not overly important anyway um the uh i have divided this up this presentation up into three acts act one uh is uh the first round of paycheck protection programs uh that came out last late march early april uh and then act two is the um group that came out uh in the law that president trump signed december 27th and then act three we'll talk briefly about forgiveness i'm not in depth because that is um that is an hour all by itself um i'm gonna try to go high level but with enough detail to help you uh and then you let me uh know um okay heather that's fair she didn't sign the first one because she was afraid it wouldn't be forgiven um and we'll talk about that and if if we need to do a separate time sarah on um on on forgiveness we we can certainly do that so let's go uh the second slide yeah there we go um kayla yep this just says that i don't know everything regardless of how i might act or sound it you should check with your own uh person or someone who knows the most about your situation uh before you do anything drastic um and then i have the agenda that just outlines what i've said that we would talk about today so let's go over to what are um act um act one loans which i think yep there's our agenda and uh here we go next slide so as i said um the carers act which is what we call what you and i think of as the first stimulus package and there was actually a program called the family's first corona virus response act but we don't think about that one very much this first um the cares act made these paycheck protection program loans available starting april 3rd and that was a very fast start so the the president i think in that case signed the law like march 27th and less than a week later they started making these loans available and the problem with that was that it was a little bit it's been analogized to um building a plane while it's in flight so they uh they didn't they weren't organized at the outset they just did everything they could to get the money out and i honor that and i i understand that and i'm glad but the amount of confusion and anxiety and fear uh like will it be forgiven uh what am i gonna do if it's not um it was significant and and was really troubling and i understand that so those first loans that were offered in um april uh there were two rounds of them so the first amount of money that was allocated for the loans went really fast uh and so congress went back and they reallocated additional funds that second set of funds which was available to anybody who met the criteria didn't run out when the program ended uh when they quit taking applications which they did in august there was still 133 billion dollars left so um the pace at which applications are going in right now indicates that everybody is going to have a fair chance it's not going to run out like it did the first time so if you know the loans have been available to to two and a half weeks i guess if you haven't applied that's okay these first round loans that were available in april that they were available again so there what we're going to talk about those the act that um was signed at the end of the year we're going to call it the economic aid act made changes i've just folded those changes into this presentation so if you got a first round loan and you hear something different than what you knew or understood at the time that's because probably something changed and i'm just treating this as uh as if this is the first time um the loans are administered by the sba and the department of treasury um that's really interesting because um the the administration so both of those are executive branch agencies uh have played varying roles in um in the administration of the program secretary mnuchin and the trump administration was very hands-on uh and president biden and his team have already been very hands-on taking steps yesterday to increase the flow of the money so so that's been kind of interesting from the nerd perspective here um you are eligible for a loan if you have not taken one before um if you are a small business concern for profit or non-profit nonprofit uh i mean 501c3 which i think would would cover this group and you have less than 500 employees if you have more than one location you have to have less than 500 employees if you add all of those facilities together i don't know if we have anybody in kentucky with that many employees perhaps perhaps we do the loans are forgivable uh and that is um one of the things that made the loans so popular and we're going to talk about what it is about them and what it is that we need to do uh to make sure that it's forgivable next slide please caleb um so typically um folks want to know four things and this is true about um above this loan and if you have already received a first round loan then what they're calling a second draw loan and i would hazard to guess that child care providers are a part of the hardest hit groups that congress intended to get this part of this second round money so how much can i get how can i spend it how will it be forgiven how much of it will be forgiven uh and by golly just how do i get it period so let's talk about those four things uh just like the first round next slide please um you calculate your average monthly payroll cost that sounds like a cpa phrase if there ever were one uh and multiply that by two and a half that's your loan amount but it can't exceed two million dollars um this is true again whether this is your second round or your first round loan that's that's the same um so the next part of the slide talks about what constitutes payroll cost so that average monthly payroll costs has two components right average monthly and then payroll cost so payroll cost means gross wages and there was a ton of confusion about this when the program started back uh last march in april well april um because we didn't know but now we know it's gross wages if you looked at if you just finished the w-2 for your employees and you looked at it um and it has that w3 uh form on top that adds everybody up and it says at the top total wages that's the magic number that's your gross wages for 2019 or 2020 a lot you can use either 2019 or 2020 for both the first and the second raw loans most people are using 19 because they had higher wages in 19 because they had to let people go et cetera et cetera in 20. um but you you can choose you add to your at your whole year gross wages um employer share of health insurance if you're i mean if you're able to and i completely understand that um same thing with retirement uh and uh we go to this little squinchy state unemployment tax line and add those four quarters up and and add the unemployment tax expense so your gross wages plus the employer share of health insurance that includes um life vision short-term disability um i think i'm forgetting something dental and then um you add those things together divide by 12. see down there in the last bullet divide by 12. uh now we've got average monthly our total payroll cost divided by 12. multiply that by two and a half and that's the loan amount the form the application form in a sense walks you through that it asks you to put in one box your average monthly payroll cost so that's our total payroll cost divided by 12. then it'll say times two and a half and and that's where you put your two and a half um okay let's see next so what if uh you don't have any payroll maybe it's just you um and that is a little different that's true um so in that case if you file a schedule c with your individual income tax return this tells you how to go on that individual income tax return and um what line to use divide that by 12 multiply it by two and a half uh you can't exceed twenty thousand eight hundred and thirty three dollars um i don't know that there are many people in the child care business that make more than a hundred thousand dollars but that um 20 833 uh shows that that the government has said uh the most that anybody can recover is an amount uh equal to two and a half months that's what that two point five is it's about ten weeks of payroll um at a hundred thousand dollars no more than that so if we think back to our payroll costs that i don't want to over complicate it but if there was anybody in the organization that was making more than a hundred thousand that person's um would be limited to this uh twenty thousand eight hundred and thirty three dollars if you don't file a schedule c you have a an llc you file as a partnership maybe you're an s corporation or maybe even a c corporation i don't know there's a document and this is a link to that document and i'm pretty sure kayla that they do get the slides at the end um and if if not or for some reason the link doesn't work here here is the uh magic space on on the internet well one i'm sure you could put in mr googly how to calculate loan amount and i bet it would pop back right up but the most reliable website is the website of the department of treasury and it has a ppp loan [Music] so um website in in within treasury and you go there and they have all these documents they have the application forms they have the forgiveness forms and they have how to calculate the loan amount for the first round and they have how to calculate the loan amount for the second round so that gives you very specific instructions like we just went through um on how to um on how to figure out your loan amount so that that answers the question how much can i borrow let's look at in the next slide how much we can spend well you can spend obviously as much money as you want to spend i think i it would have been better if i had asked what can i spend the money on so you have to spend at least to get full forgiveness okay and i have designed this around the idea that we want full forgiveness we good heavens we're barely making ends meet we don't need a loan payment right so uh we have to spend at least 60 percent of our loan amount on payroll costs gross wages employer share of health insurance employer share retirement contribution uh kentucky unemployment tax you can spend it on a secured indebtedness which means a mortgage interest if you own a building and you've purchased a building and it has mortgage the interest on that mortgage if you have purchased equipment and the lender took a security interest in that equipment in other words if you don't pay it all back they take the equipment you can take the interest on that rent may be more more relatable uh in utilities the indebtedness the rent the utilities all of those things had to have been in existence as of february 15 2020 and when you apply for forgiveness you'll have to establish that fact for um for your for your lender in the new act uh retroactive to um to the first round as well you can now include certain uh amounts that you have spent on software for your organization to help you do a multitude of things better um you can use the money on property damage that cost uh that was the result of unrest um in your neighborhood or your area um that's not covered by insurance um supplier calls for essential supplies if you um purchase this one's a little weird um and um it it to me it applies almost more to the restaurant industry and it looks to if you buy a bunch of raw ingredients you get shut down um and you know you had to pay for them anyway that sort of thing i haven't really thought of how precisely that would apply to you we'd have to look at those words now you've spent money in this area worker protection expense so you're all wearing masks you may have provided masks to your staff you may have provided shields you may have put up plexiglas barriers uh there's dozens of things that you have had to do to adjust now all of these costs and this is important because you know as you and i sit here today when i think about these things i'm thinking well yeah i've spent a ton of money on worker protection costs but that what what is in the past is in the past so these costs that we're talking about here have to be spent in this magical period referred to as the covered period okay so if we look at the next slide we're going to start talking about how do i get my money forgiven and the first point there is you have to spend the money in the magic covered period well what in the world is the covered period well the covered period all we what we know about it is it starts on the date that you receive the money from the bank all right so if i applied today on january 27th and uh the bank got me the money on february 7th the february 7th when it hit my bank account or they gave me the check that would be the start of my covered period when the loan's very very very first came out you had eight weeks in which to spend the loan amount to get it fully forgiven now you can go up to 24 weeks so um that gives most everyone plenty of time to um to spend all of the money most businesses if you think about the calculation your payroll cost times two and a half your average monthly payroll cost times two and a half most business will businesses will spend their entire loan amount on payroll in 10 weeks 10 to 12 weeks so having that 24 weeks of flexibility um gives you a lot you can apply as soon for forgiveness as soon as you spend all the money so you don't have to use 10 24 weeks you can use 10 or 12 or 14 or anything in between um so if you pend the money on the things that we talked about in the prior slide and um you know what sarah i want to i want to provide a document if you wouldn't mind circulating it to give some definitions for those things and i'll try to get that done this weekend uh so that everybody knows a little bit more i actually think it's it might be on the actual application or forgiveness form but just to make sure i want to get that out to you so there are two circumstances uh well there's three i guess in which forgiveness could be reduced um and this is where we could spend an hour and i can make my head spin and your head spin which is not really the way we want to start a wednesday morning um if we can't maintain our ftes um and in the hard part about that is it's ftes compared to actually guys actually guys you don't have to worry about this because you were all impacted by a governor's order governor beshear's order that you had to shut down or significantly reduce your capacity when you're impacted by a governmental order like that then you don't have to worry about these ftes or any of these other things that can reduce your forgiveness and makes your forgiveness process much easier as with everything in life documentation is critical so there's documentation about all the expenses we've been talking about that you'll want to keep all right now let's see how do i actually get the loan um kayla on that next slide you go to a bank that has been approved by sba and there's tons of them um there are even internet banks that have been approved by fba uh sba um in the course of filling out that application which is pretty straightforward um you're going to swear a couple things or attest to a couple things like this is the biggie the uncertainty of current economic conditions make the loan necessary to support ongoing operations that's not hard for you guys right i mean goodness gracious i don't know um we'll pray to god that we don't surge again to some of the levels we've been at recently but you don't know day to day what your population is going to be um whether or not you're going to be able to uh work at full capacity or diminished capacity so that uncertainty is not a problem for you nor is it hard for you to certify that you will use the money to maintain your workers and other eligible expenses now if if for some reason you um you were in a situation where you were behind on your rent and you used all of the money on the rent um that's not prohibited it just means that you wouldn't be forgiven on sixty percent of the loan so if the loan was a hundred thousand dollars you owed somebody a hundred thousand dollars in rent you plopped it all down on the rent you would have to pay sixty thousand dollars of that back the long term is five years at one percent non-compounding so um that's not that those are great loan terms but only if you have money to make payments right so this is the form number for the application this is the first round application um and or a lot of banks have little portals that you go into you go on the internet and you fill out the the banks form and it mirrors to some degree the form apply before march 31st 2021 or as soon as you can again i don't think the money is going to run out anytime soon but the sooner the better because you don't want to find yourself in that situation so that's an overview and i want to leave plenty of time for questions i'm about 30 minutes in let's look at second draw loans kayla and just fast forward through my act ii there um so these loans were authorized by the uh the act that sarah mentioned when we were starting out at the very beginning the consolidated appropriations act 2021 um was all of the authorization of money for spending by the federal government for everything from defense spending to health care to help for hard hit businesses now if this is your second time around there are it's a little more narrower to apply uh again with this uh with you on the child care industry these are probably not hard um criteria to meet now it's no more than 300 employees you have to show a 20 a a reduction of 25 percent or more in your revenue when you compare a quarter from 2020 to a quarter in 19. so you shut down i know most of you probably for most of the second quarter of 2020 so if your uh revenues are generally i'm just gonna use a hundred thousand guys because it's round and i can do that um i'm sorry if that's um way out of the ballpark so if your revenues in the second quarter of 2019 were a hundred thousand dollars and in the second quarter of 2020 or 74 999 or less 25 or less then you qualify for the loan you can use the first second third or fourth quarters you compare 2020 to 2019 a reduction in any of those um quarters will qualify you for the loan you have to have received a first draw loan to get a second draw loan and you have to have used uh the loan or uh the full amount of the loan i don't know anybody who got a first round loan considering that the last ones were made in august that hasn't already used all the money um so that is one of the certifications you have to make i stuck in eligible entities on here just because just to let you know there are some i don't i can't imagine that you all fit in any of those categories they include if you're owned by the people people's republic of china a certain district in hong kong if anyone is a convicted felon which i don't think i don't know how that affects licensing so again i'm not sure that any of those um they're out there if it's something that you're concerned about um if you're a bookie on the side don't apply guys uh you know keeping books on the side won't help all right so next we're going to look at so revenue reduction what what how do what is that how do i calculate that revenue reduction so the next slide talks about what constitutes grocery seats and that's the way that they are defining revenue reduction they're looking at your total gross receipts if you want to slide over there kayla thank you so much there's a definition for for-profit entities and the next slide and go you can go ahead and go there i know this is quick guys but i'm going to summarize it for you that's for non-profit entities basically it's everything it's all of your grocery seats um and uh before you deduct it for anything so let's say you're a non-profit and you do fundraising activities it includes the income from your fundraising activities before you deduct expenses related to those fundraising activities okay so if you think about like the largest amount of money that you could get uh i mean that you receive in a year uh the amount that you deposit that's related to the cert well the amount that you deposit in your business account or in your account uh from all sources that's the kind of grocery seats number that they're looking for um so they want to know about everything um and let's talk for a minute about how you prove that so if you do a second draw loan you have to prove that 25 reduction and they say that you can prove that with a quarterly financial statement so if you have quickbooks or any kind of accounting software or even if you do you do your books on excel spreadsheets if you have something that says total revenue total expense net profit or loss and you do it by quarter that'll work okay if you have uh you can take your bank statements for a quarter and you can highlight on the bank statements the amounts that make up your business's gross receipts and add those together on a piece of paper an excel spreadsheet and adding machine tape it better not matter um you should be able to give whatever documentation you can um and uh so you can use your bank statements and you would use your bank statements from 2020 you'll compare them to your bank statements for the same quarter in 2019 or they say you can use your tax return now there's a slight problem with that one right you are an individual and you and you have a schedule c the internal revenue service is not accepting your tax return until february 12th so your tax returns not done yet and even if you went in and you filled it all out you have to certify that those are the exact amounts that are going to be on your return well if you use a cpa working with about 200 of them i know that most of the cpas don't know those numbers yet so i don't want you certifying anything that you don't really know so i'm really in favor of the um and and god bless their hearts the government i know you don't hear that very much about the government but they are trying to help by saying you know you might not have quarterly financial statements the bank statement thing sounds a little clunky so you could use your tax returns but that assumes that you have your tax returns um so that is an option uh and as we get later toward that closing date of march 31st people will have those things but right now most people don't so let's look and see uh how um no so does your money from the from your first raw loan count against your second draw loan no you don't have to add that in when you're calculating your grocery seats okay now if there is other government money that you have received uh grants or things like that those things more likely than not count uh let's look at this almost we're about three slides from the end for about three slides from your questions so when kayla um uh yeah we've been she's been admitted she's been very very busy between me and admitting people so thank you kayla for your work there is a slightly different application form for the second drawing you might imagine it says did you get a first roll and you have to certify that you um spent the money or will spend the money some banks or some lenders are requiring people to apply for forgiveness for their first round loan before they will make the second round loan it's not in the law but i suppose we could call it um lender's choice the reason is i think simple what's called money only about 30 percent of first round borrowers have submitted their forgiveness applications the banks don't get paid until those forgiveness applications are are filed and accepted by sba so they're out hundreds of billions of dollars collectively until these forgiveness applications get turned in this is a lever one of the few that they have um so some of them not all of them but a few of them are exercising that uh that opportunity um so a slightly different application form but almost everything else is the same guys 60 threshold for payroll cost same covered period 8 to 24 weeks same start date the date you get your funds um and there is a how to calculate your loan amount those how to calculate your loan amount documents um also tell you what documentation you're going to have to provide they're really good documents the one for non-profits the one for first straw loans is 17 pages and the one for second draw is 19 but don't be scared away by that because their question and answer so so they're pretty good so let's quickly go to act three and talk about forgiveness so that we can get to your questions it is complicated i i'm sorry i i wish it weren't um but it is um it's it is easier now today if your loan is a hundred and fifty thousand dollars or less uh it is easier if you can use just your payroll so you know how you're talking about those gross wages amounts and and the total amount that an employee gets paid before any reduction or deductions for any of the tax withholdings or any of that if you can use just that number uh when you add that up and over the 24 weeks that gives you or however many weeks you want to use enough to cover your loan that's easy because then you don't have to provide utility bills and all of these other invoices and bank statements etc under 150 000 there is a one-page certification um the documentation requirements have been um loosened for loans of 150 000 or less for everything else the loans are six years you keep your documentation for six years uh for 150 or less it's four years of payroll three years of everything else two million or more is an automatic um review by sba 150 000 or less you're not guaranteed that you won't be audited but obviously there are only so many resources and this is not the place to focus if you can't use form 3508 s uh 99 percent of you uh when i think about the ymca so they probably can't but most of you will be able to use 3508 ez which is an easier form and you'll be able to use that easy because you can check the box that you were impacted temporarily um or yeah by a government order uh either by capacity or complete or complete or partial shutdown so most of you will be able to use that 3508 ez that is all the rattling on that i'm gonna do the next slide says questions so now it is your turn [Music] kayla is the moderator among all of her other responsibilities forwarding my slides letting you guys in now she's the moderator so kayla what do we want to know we have one question here that says do we start the application process to the bank yeah start with the bank so you you probably have a bank unless you're like my dad who keeps his money under his mattress you have a bank where you deposit your funds have your checks whatever i would start there i would say guys i want to apply for a paycheck protection program loan do you want the the paper form or would you like or do you have a little portal i need a link and i do it that way so yeah start with the bank okay we have someone asked if they receive a first draw loan does that money count as revenue when applying for the second draw right it does not okay um we have questions says um can you address how taxes will be assessed on these loans um very carefully okay second part here um will child care providers be required to pay taxes on these dollars received yeah so um federal income tax no state income tax kind of so for federal income tax purposes you do not put the amount of the loan in income in your tax return but you do get to deduct the expenses that you paid with the loan proceeds so in in a normal world which we're all praying to get to soon i know um if we if we made a hundred thousand dollars that one hundred thousand dollars would go in our um income and if we uh spent ninety thousand dollars the ninety thousand dollars would come out so this year for federal income tax purposes and this will be true for 2021 too the irs actually congress made him do it said nope you don't put that 100 000 in but you can go ahead and deduct those 90 000 of expenses um some people nerdier than me think that that's double dipping but we'll just let them be themselves for kentucky however the 100 was doesn't go in your income but you don't get to deduct the 90. now i could do some very fancy calculations and tell you that that means that you are only benefiting about uh in that particular example it's as if they took away forty five thousand dollars worth of your loan forty five hundred dollars worth of your loan sorry guys um but um that's a little bit so there'll be a little bit of tax on kentucky because you can't deduct the expenses but there won't be on federal and there shouldn't be at the locals so hello out and but they fall pretty close so i don't think you'll see a problem on the federal okay we're getting questions if the slides will be available and if the recording will be available and yes we'll we'll make those available and we'll let everyone know how we'll send those out we have a question wanting to know if you're familiar with house bill 278 an act relating to expenses paid with paycheck protection program loans and how this may impact providers yeah and so that's in the kentucky general assembly right bradley um so there is a movement up front uh in the general assembly by a small group of legislators to um change our law so that those expenses are deductible and you don't get that 4500 hit i have not heard well i have heard that um it's popular of course it's popular uh but i don't know how much it costs the state um and sometimes i know you all won't believe this but sometimes decisions are are are driven by that um so um i don't have any good feel for its prospects um i don't know if they're 50 50 or 90 10 yes there is a bill to that effect ah that looks like all the questions so far if anybody else has any questio s feel free to um to put those in the chat yeah so somebody um kayla asked a two-parter um chad chad asked we got round one and we got state child care stipend funds and we put it in our financial statements as miscellaneous income way to go chad i think that was right uh are we allowed to not count the ppp and the state stipend funds so you're allowed not to count the ppp and i don't know about the state's stipend funds so um sarah or even chad or anybody tell me what the state stipend funds were supposed to do were they supposed to make up for lost revenue uh or were they supposed to be used for specific expenses so the state stipends that went out were sustainment funds or they were dedicated to ppe the main purpose of those funds was to help with salaries rent or mortgage fixed expenses utilities um insurance premiums those types of things they came through specifically for child care they were part of the cares act and we're getting ready to have an additional round of those with the the new um the new funding that has been offered there will be more child care funds that go through now if they were used for salary then they and and they were put through payroll then you know they had payroll taxes um but in general the the overall goal was to prevent centers from closing during a reduction of revenue yeah yeah so i think bradley the answer to that is you don't have to include the well maybe it wasn't bradley i'm sorry i think it was chad you don't have to include the um the ppp funds but i think you do have to include the stipend um and the reason i say that is because it was it's addressing the same set of costs that those ppp funds were i look about i look at it a little bit like revenue replacement the the the the solid truth is there's nothing out there on it so colleges and universities have this because they got supplemental funds hospitals have it because they got supplemental funds they're all asking the same question the consensus among nerds is that um you have to include it but i don't know um something could come down any day that says you don't i have never had one of these sessions where i finished with questions and everything before the end of the time and if we go back to march of last year or april of last year i bet i have done [Music] 25 of these so let's not be shy guys we've got nine minutes left that's a long time is this a question we should ask our bank about yeah that question about the stipends um yes please do and chad if they answer let me know um and i mean that seriously you have my oh guys my deepest apologies do you have a pencil or a crayon nearby i forgot to put my email address on my slides dog nabit it's e as in elephant horn h-o-r-n like hong kong according to my dad all one word e-horn at dean that's doug's last name d-e-a-n dorton d-o-r-t-o-n that was richard's last name dot com e-horn dean dorton dot com the firm's name's on there my name is on there so it's just my first initial last name at deandorton.com thanks chad yep thank you andrea e hornetdeandorton.com there it is in the chat um i answer a lot of questions i try to do it quickly um i try not to do it in the middle of the night it's a spousal thing you know um not to answer questions at 2 45 in the morning so kevin middleton ask a question you you got me involved here so you should have to ask a question kevin middleton and i were in leadership kentucky together if that's an opportunity that's available to any of you all or the leadership program in your area um um try that um you meet interesting people not necessarily kevin but other people um so erica this is sarah i'll interrupt for a second we have had a couple of questions that have come to us if if the child care program has their account their um you know they're checking savings with one bank but that bank is not offering these loans then where would be the most appropriate place to reach out to in that situation if if their financial institute does not want to um to pursue the application process that's a great question sarah on sba's website um sba.gov there's a list of lenders i would look for um i don't know where you all are all from but i would look for uh banks like um whitaker um some of the s the smaller banks because stick in the chat guys the banks you've gone to um so people can see i would stay away from the chase the pncs the bank of america's bank of america has made more loans than any other anybody else so far there is an online platform called biz b i z two the number two credit biz2credit.com they've been a big lender um traditional bank uh bradley said um there's a ah a south central what's the name of the bank in south central kentucky that's made so many loans that seem to be really hands-on um but first southern yeah look look to some of the smaller banks in your community and ask them you'll get more hand-holding you might republic bank has been a good one you might even might even change your banking relationship who knows but credit unions there's a lot of authorized lenders really good question so chuck wants to know if you're currently generating enough revenue to cover all your expenses chuck good job how do you prove that the loan is being used to cover payroll rent etc well that's super um that proof um is in the documentation so you don't have to [Music] cash is fungible chuck is saying cash is fungible so how do i prove that it's this cash from this loan that i'm paying with uh with that money you don't have you don't have to do that you just have to provide documentation that you paid those expenses um and uh that'll take care of the one if you have other forgiveness questions guys i don't want you to be afraid of the forgiveness i want you to get the help you need um and um but i understand but because i i couldn't get stuck with a loan that i had to pay back either so do you have other ones sarah or kayla that have come just to you you know most of the questions that we've had when people have reached out is just the the fear of going through the process and what if it's what if it's not forgiven um our our child care programs have all had reduction in revenue so i don't think anybody is going to have a hard time proving that that they have reduced revenue right now they'll be able to to show that um you know keeping in mind that salary is is the the top priority with these so you can continue to support your people and if you can document that um but but documentation is a big deal for our providers just sometimes wondering what to document so you know you're if you're not going extremely high tech with quickbooks or anything your excel spreadsheet will still work just holding on to that and making sure that you utilize that for for the forgiveness process um guys we're back to that government order i mean sarah you guys are still under reduced capacity orders right yes yes so unless something magical happens and that goes away in the next uh before you can spend this money even if it did i mean once you get this money because we're under these restrictions this emergency is not going away unfortunately that's enough that that government that order by andy is enough oh andy and i practice law together so he is really governor handy to me but um that that is that battle that alone should get you full forgiveness you check that box on the easy form for documentation your bank statement so all you want to do is prove that you paid it okay so you can you can make copies of the canceled checks or of the bank statements from the period of time you use to use up the proceeds and you can you would add up like let's say you write all your payroll checks out of your account you would add up all your page your payroll checks now that's after deductions right so you would want to add back um that's a little trickier but you would want to add back um state withholding ah let's not go there um that would but you could do it that way you could add up your paychecks add up your rent checks add up your utility checks now you have these additional um areas that i'm going to give you those definitions for keep your invoice um and then show on your bank statement highlight you know write ku september or whatever the appropriate month is so here's what i can do sarah um i'm gonna send you something that talks a little bit more about this covered period and the expenses within that covered period the definition of the expenses and exactly how you document those expenses somebody tell me um somebody tell me that's in a small setting that doesn't have like a bookkeeper or something like that how you pay payroll how you calculate the total amount so let's say i'm supposed to get 15 dollars an hour do you just like multiply the 15 times the eight i worked that week and say okay erica got ninety dollars you could do that guys if you have that data so if you have erica worked fit erica worked eight hours on wednesday at 15 for this many weeks and um jamie worked bloody blah for this many weeks and bill worked belotti blah and actually worked blah blah you could you don't even need an exposed excel spreadsheet guys you can put it on a piece of paper and multiply it and add it up and if some big bad bank says no you just call i i just funny should bring a lot of grace at this moment in time that's why you should go to a small lender personally well erica we can't say thank you enough for your time today and for helping um walk through some of these these processes and help calm down fears that some of our providers may have with with forgivable loans you just want to make sure you get to that forgivable part so we want to thank you immensely thank you for to kevin middleton for recommending um you um to to do this today we appreciate his assistance there and we will get get information out to providers who have asked for for the powerpoint and everything so i wish everybody a wonderful rest of your wednesday and thank you again for for your time thank you all so much have a great day