In evaluating eligibility, lenders are directed to consider whether the borrower was in operation before February 15, 2020 and had employees for whom they paid salaries and payroll taxes or paid independent contractors.
Lenders will also ask you for a good faith certification that:
This section lays out the process by which borrows will be forgiven on loans taken under the paycheck protection act
The bill establishes a new guaranteed loan program at SBA for small businesses to cover payroll during the immediate crisis. The Paycheck Protection Program would:
Small and Medium sized businesses up to 500 employees, non-profits, independent contractors and the self-employed. This includes churches but only to cover payroll costs of an associated business, like a thrift store.
The program temporarily waives SBA “affiliation rules” to allow businesses with multiple locations the normally are not considered small, to qualify. This is especially important for our restaurant and lodging sector. They are still limited to the same maximum loan size – $10 million – as a business with one location.
The SBA’s network of 2,500 7(a) lenders will be used to process these loans. There is also authority to fast track additional lenders to process and disburse these loans to reach as many small businesses as quickly possible.
Yes and No. The amount of the loan forgiven at the end of the year will be determined by how many employees were retained on the company’s payroll, up to 100 percent for full retention. There are safeguards built in to protect against employers gaming the program, as well as recognizing some employers will be forced to do temporary furloughs but bring their employees back on.
The program is open until June 30, 2020, as it is intended for immediate payroll relief to ensure businesses do not mass layoffs during this crisis.
It is nearly identical, we worked with the Senate to include more than just payroll in the loan amount. The CARES Act now includes amounts already disbursed under a new EIDL loan from SBA.
The SBA Debt Relief program provides a reprieve to small businesses as they overcome the challenges created by this health crisis.
Under this program:
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eli=gible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
1.- Express Bridge Loan Pilot allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,00 with less paperwork. Loan is at SBA Express lenders discretion.
2.- These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
3.- if a small business has an urgent need for cash while waiting for a decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.