Small Business:
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Paycheck Protection Program:
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Loans will be made by Banks that are approved SBA lenders
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The maximum loan is the lesser of 2.5 times one-year monthly average payroll costs or $10 million.
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The loans can be used to cover payroll, mortgage payments, rent, utilities and debt obligations.
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Interest rates of 1%, and non-recourse, so no personal guarantees.
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Loan payments will be deferred 6 months to a year.
LOAN FORGIVENESS!!!!!
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The portion of the loan used to cover payroll costs, mortgage, rent and utilities during the 24 weeks after loan origination will be eligible for forgiveness.
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Payroll costs forgiven are limited to salaries of employees earning less than $100,000 annualized.
Economic Injury Disaster Loans and Loan Advance (Apply for this at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance):
The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans of up to $2 million. Successful applications for the loans will receive a the lesser of $1,000 per employee or $10,000 as loan advance that DOES NOT NEED TO BE REPAID.
Apply here: https://covid19relief.sba.gov/#/
SBA Debt Relief:
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The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
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The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
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No details on how to apply yet, it might be linked to the EIDL above. Track details at the SBA link provided.
Links: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
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