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Business Owners - Paycheck Protection Program

Important Information!

On Friday March 27th, President Trump signed a $2,000,000,000,000 (that’s $2 trillion) coronavirus stimulus bill. If you are getting this e-mail, you are either a business owner, connected to a business owner, or just a smart client of ours who can benefit others with this important knowledge. Please use what makes sense for you and pass along the message to others it may benefit.

Highlights

  • $350,000,000,000 ($350 billion) fund to support small business (< 500 employees)
  • Any business is eligible (sole proprietor, LLC, S-Corp, C-Corp, Non-Profit, etc.)
  • How much = 2.5x Average Monthly Payroll*
  • What are the fees = $0 (The SBA waives the fees to you)
  • What is the interest rate and term = 4% fixed, no payments for 6-12 months, 10 year repayment term
  • If you meet the guidelines = the loan will be FORGIVEN! Yes, that means that you are not required to pay back the loan.

* Max employee compensation includable is $100,000

I have attached a few pieces from Live Oak Bank and the US Chamber of Commerce that include more information, as well as a Payroll Calculator worksheet to assist you in determining how this could impact your business. This program is administered by the SBA, so your local bank is the place to go to apply. As of this minute, the SBA is still working to provide guidance on the final details, so applications are still pending completion. The stated goal is to get money to businesses as quickly as possible to be used to help them keep their employees actively employed.

If you would like more information or need to discuss how this program or other options can impact you and your business, please let us know. If you do not have a connection with a qualified banker, we can point you in a good direction. I have been advised that the bank through which you make application will be compensated directly from the SBA to originate these loans, so I’m sure your community banker(s) will be excited to assist.

Here are few resources:

Payroll Calculator

U.S. Chamber of Commerce

COVID-19 SBA Loan info

Coronavirus Small Business Solutions