Please find useful information below on the newly signed Coronavirus Aid, Relief, and Economic Security (CARES) Act as prepared by one of our insurance company partners, AmTrust. Also, I have been alerted to what should be a really good webinar for for 9a PST on Friday, April 3rd. Personally, I have signed up for this. You may want to as well as I think this will answer many questions you might have on understanding the CARES act: https://webinars.multifunding.com/
For a nice one page overview of the CARES Act please see the PDF below:
In summary, the CARES Act Includes:
• Paycheck Protection Program (PPP) Loans: Provide capital to cover the costs of retaining employees, such as for salary and wages, healthcare benefits, sick time, retirement benefits and more.
• Loan Forgiveness: SBA will forgive the principal amount of PPP Loans that a lender reasonably expects a borrower will expend during the 8-week period beginning on the date of origination for the loan on the sum of certain (a) payroll costs, (b) mortgage interest, (c) rent obligations and (d) utility payments.
• Economic Injury Disaster Loans (EIDL) and Emergency Economic Injury Grants (EEIG): Provide loans and grants to small businesses and private nonprofits harmed by COVID-19.
• Training and Counseling: Resource partners across the country may receive extra funds to help support small business owners with free counseling and low-cost training regarding COVID-19.
SBA loans are expected to be available starting this Friday, April 3rd. Small businesses that are interested in obtaining an SBA loan will want to their bank to start the process. AmTrust provides the sample application HERE and advises business to prepare by gathering the following:
• 2019 Payroll – including the last 12 months of payroll
• 2019 Employees – 1099s for 2019 employees and independent contractors that would otherwise be an employee of your business
• Healthcare costs – all health insurance premiums paid by the business owner under a group health plan
• Retirement – your company retirement plan funding paid for by the company
For a simple 1 page sheet on the Paycheck Protection Program part of the CARES Act please click HERE.
Please click HERE to find various Coronavirus resources for small business (as defined with 500 or less employees).