The Coronavirus Aid, Relief and Economic Security (CARES) Act was passed on March 27, 2020. It contains a provision to allocate $350 billion to small businesses in the form of forgivable loans, known as the Paycheck Protection Program.
We highly recommend you apply for this program if you meet any of the following requirements:
- A small business with fewer than 500 employees, with as few as 1 paid employee
- A 501(c)(3) organization with fewer than 500 employees, with as few as 1 paid employee
- An individual who operates as a sole proprietor, an independent contractor, or is self-employed who regularly carries on any trade or business
This program has the potential to provide a very significant amount of assistance and in many cases will not need to be paid back. We are happy to consult with you to determine if this program is right for you and help you navigate through the process with your bank.
As with so many of the programs that have been passed in the last couple of weeks, the complete information is not yet available on all aspects of the program. The Small Business Administration, who is administering this new program, has until April 10, 2020 to release the complete requirements for the program. There is speculation that the loan applications will be available well before then and possibly as early as late this week. While it is unknown the exact information necessary for the application, we have a good idea of what will be needed. We anticipate high demand for this program and money will go quickly. Therefore, we recommend that you are doing advance preparation this week and working with your bank to provide all the information they will need to submit your application as soon as it becomes available.
You can only apply for this program through a bank offering loans under this program. As we understand it right now, many banks are prioritizing their own customers first. Therefore, you should contact your bank now to start the process and find out what they need from you.
How we can help:
- We can provide you with a list of items and information that you should start gathering now in anticipation of the application.
- We can assist you in determining the maximum amount you are eligible for.
- We can assist you with gathering the information you need to provide to your bank to apply for the program.
- We can assist you in determining how much may be forgiven and strategically plan for what you need to do to obtain the maximum amount of forgiveness.
We understand that some of you have small amounts of payroll and as such this program may not be enough to help you through this crisis. There are other emergency and loan programs available that can help and can be used in conjunction with this program. Please contact us if you would like more information about other possible programs or incentives.
As we get more information on this program and other changes affecting small businesses and individuals, we will continue to keep you updated. We appreciate your business and are here to help with sound advice and consulting as you navigate this new business environment as well as the myriad of new programs that continue to be released.
For more information on the details of this program, click the link below.