Small Business:

Paycheck Protection Program:

  • Loans will be made by Banks that are approved SBA lenders 

  • The maximum loan is the lesser of 2.5 times one-year monthly average payroll costs or $10 million.

  • The loans can be used to cover payroll, mortgage payments, rent, utilities and debt obligations.

  • Interest rates of 1%, and non-recourse, so no personal guarantees.

  • Loan payments will be deferred 6 months to a year.

LOAN FORGIVENESS!!!!!

  • 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.

  • 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:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.

  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

  • 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

                https://www.congress.gov/bill/116th-congress/house-bill/748/text?r=1&s=1#toc-HCCF2DA7CBD6341059EAB97C24489743B