We can help you navigate the new COVID Relief Programs.
What Businesses Need to Know About the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
- Paycheck Protection Program / SBA 7(a) loan program
- Businesses with fewer than 500 employees (some exceptions)
- Maximum: $10 million @ 1% interest rate for the first 2 years
- Based on 2.5 multiple of one month’s payroll, averaged over the last 12 months
- Loans can be forgiven
- Economic Injury Disaster Loan (EIDL) / SBA 7(b) loan program
- Maximum: $2 million @ 3.75% interest rate
- 1st month’s payment can be deferred a year from date of the start of the note
- Can be approved on credit score alone, NOT repayment ability and no tax returns required.
- Loans smaller than $200,000 can be approved without a personal guarantee.
- Borrowers can receive up to $10,000 in emergency grant cash that does not have to be paid back.
- Also available to sole proprietors & independent contractors
- It is possible to get both a Paycheck Protection Loan & an EIDL, if the loans are not paying for the same expenses.
- There are significant business tax changes to ease the burden on businesses impacted by COVID-19. (Contact us for details.)