- On March 29, 2020
Unprecedented legislation is providing much-needed economic relief to those affected by the current pandemic. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed on Friday as the largest rescue plan in history, including $2 trillion of economic stimulus and support. The resulting Paycheck Protection Program provides businesses with the opportunity to apply for loans which may be forgivable.
Paycheck Protection Program Basics
- Businesses must have been operating as of February 15, 2020, have fewer than 500 employees and less than $15 million of equity
- Maximum loan amount equals 2.5 times the average monthly payroll costs for the one-year period ending on the date the loan was made, or $10 million, whichever is less
- Expenses such as payroll support, insurance premiums, mortgage payments, utilities and other debt obligations are tallied for eight weeks after loan origination and are eligible for forgiveness
- No collateral or personal guarantee is required, shortening the loan approval process
- Forgivable portion of the loan is federally income tax free
- Application and approval process is expected to be timely and streamlined
Questions and Considerations
We can help you answer questions such as:
- Does my business qualify for a forgivable loan? If not, are there other programs available?
- How do I apply for the loan?
- What banks and institutions are making these loans?
- When is payment due?
- Will interest be charged?
- Are there any fees, hidden restrictions or contingencies?
- Do recent employee layoffs affect loan eligibility?
- Can I rehire employees after loan origination?
We Can Help
Although the government and banking institutions are still working through many of the details, now is the time to take action. A large number of loan requests are expected, so it will be important to be prepared.
We are here to help. To find out what relief options are available to you, please contact Andrew Kelleher (firstname.lastname@example.org) or David Buckley (email@example.com) at 847-382-9130.