We sincerely hope that all is well with you and your family during these uncertain times.
In light of the economic uncertainty that exists, we feel it is important you are aware of some potential relief for your business. On March 27, 2020, the President of the United States signed into law the Coronavirus Aid Relief and Economic Security (CARES) Act. The CARES Act includes the Paycheck Protection Program (PPP) which includes relief for small businesses with under 500 employees that were in business on February 15, 2020.
The PPP funds loans to small businesses, which can be fully forgiven, of up to 2.5 times their monthly payroll costs, including benefits. These loans require no collateral or personal guarantees. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities. Neither, the government, lenders or representatives, will charge any fees for the loan, and if any of the loan is not forgiven it will have an interest rate of .5%.
The borrower requirements are as follows:
- A good faith certification that the loan is necessary because of economic uncertainty caused by COVID-19,
- Certification that the loan will be applied to maintain payroll and make required payments, and
- Certification you are not receiving duplicate assistance for the same uses.
Applications for the PPP will be accepted beginning April 3, 2020 for small businesses and sole proprietors, and April 10, 2020 for independent contractors and self-employed individuals. We encourage you to apply quickly as there is a funding cap.
We are prepared to assist you in the application process for this loan at no cost to you. We can help you fill out an application for this loan that is accurate and timely. As with all programs of this nature funding is limited and those who apply first have a better chance of receiving this funding. If your business could benefit from this funding, please call our office today to set up an appointment so that we can assist you in the application process