So much information is coming in and hitting us from different sources, we are trying to cut through and get you right to the correct source.
A. Paycheck Protection Program
$350 billion to support job retention and operating expenses.
The Paycheck Protection Program creates an emergency loan that can help small businesses retain a full workforce during COVID-19.
Who is Eligible?
Eligible businesses must have been operational on February 15, 2020.
How Much?
Small businesses may apply for a maximum loan of $10 million with no higher than a 4% interest rate.
Loan Forgiveness
If a business continues to pay employees at normal rates for the first eight weeks, then the portion spent on payroll, mortgage interest, rent, and other operating expenses will be forgiven.
How to Apply:
You will apply for the Paycheck Protection loan at your local bank.
B. Economic Injury Disaster Loans & Loan Advance
Economic Injury Disaster Loans are the SBA's low-interest disaster loans given to small businesses experiencing a substantial economic loss due to a disaster.
Who is Eligible?
The CARES Act expanded eligibility for EIDLs to all small businesses in the U.S. affected by COVID-19.
How Much?
Eligible businesses may qualify for a loan of up to $2 million.
Emergency Loan Advance
You may also apply for an emergency loan advance of up to $10,000. If your application is accepted, these funds would become available within three days and would not have to be repaid.
How to Apply:
Businesses may apply for an EIDL and loan advance here.
Can you get a Paycheck Protection Loan and an EIDL?
Yes, as long as you are not using them for the same expenses. Talk to your financial advisor about the best option for your business.
C. Business Tax Changes
In an effort to alleviate the strain on small businesses affected by COVID-19, the CARES Act has made specific changes to taxes and tax policy
The Families First Coronavirus Response Act (FFCRA) provides assistance to employees affected by COVID-19.
As a small business, this means new requirements for paid sick leave and paid family and medical leave (FMLA), as well as employer tax credits.
Read more about the FFCRA and what it means for small business here.
E. SBA Debt Relief
To help small businesses overcome the challenges of COVID-19, the SBA has implemented a debt relief program.
With an Express Bridge Loan, businesses may access up to $25,000 to 'bridge the gap' as you wait for your Economic Injury Disaster Loan application to process.
Do not make the mistake of representing yourself, or allowing an inexperienced or under-resourced firm to handle the sale of your business. We specialize in helping all types of small businesses sell, including business services, retail, manufacturing, distribution, and franchise businesses.
As the top business brokerage firm in the world, we have helped our clients navigate all kinds of market changes. Should we be able to help implement this plan or if necessary, sell your business, please do not hesitate to reach out.