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PAYCHECK PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

PAYCHECK PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

April 02, 2020
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Below is an email that we sent out to our clients this afternoon.  Due to the importance of the subject matter we are also posting here on the web for whoever needs this information.  Please contact our office for the documents reference in the text.

If you do not own a business please forward this email to anyone you know who does.  Everyone needs to do their part in helping America’s small businesses in these difficult times.

We have received a very large number of calls requesting information about the Paycheck Protection Program, part of the recently passed CARES Act.  These potentially forgivable loans are available to businesses that have 1 or more employees who receive a Form W-2 and to businesses who only report income on an independent contractor basis.  That means anyone who works in a Gig job, a Consultant, or even a Babysitter may qualify.  Because Congress only authorized a limited amount of money we recommend you apply as soon as the window opens on April 3rd or 10th (depending on your business organizational structure). 

Please review the attached or go to: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses (this is where we got the documents).  Should you have any questions about the documentation necessary we suggest you contact your Payroll provider or Accountant.  If your question pertains to the actual filing of your application it would be best to contact your local banker.

It is important to be aware of when the window opens to file your application: 

  • Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. 
  • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Through the Small Business Administration (SBA) you may also apply for an Economic Injury Disaster Loan (EIDL) which is now available for small business owners in all US states, Washington D.C., and other US territories. In addition to this loan the SBA is offering an immediate $10,000 advance (the Emergency Economic Injury Grant) within three days of applying for an EIDL. To access the advance, you must first apply for an EIDL and then request the advance. The advance does not need to be repaid.

Also attached to this email is solid guidance from the U.S. Senate Committee on Small Business and Entrepreneurship. We encourage you to read through this document to understand all your options and know that while the above programs may be a solution for some, there are additional loan programs for which your business could qualify. 

Finally, here is an article that I found to be a good read for any small business owner https://www.entrepreneur.com/article/348552.

 

We are glad to bring this information to you as a resource to help you and your business.  Please feel free to contact our office if we can be of assistance.