In an effort to keep our members fully informed, the USTPA would like to make certain everyone is aware of the two primary loans that may be available for US Small Businesses through the Coronavirus Aid, Relief and Economic Security (CARES) Act. Interested businesses are encouraged to consult participating financial institutions and your financial advisors as soon as possible for additional information.
The first program is the Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed. This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed and is expect to have this program up and running by Friday April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day. The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses. This program is for any small business {Training operations are eligible as a small business} with less than 500 employees (including sole proprietorship, independent contractors, self-employed persons) and private non-profit organizations.
The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.
The second program in response to the Coronavirus (COVID-19) pandemic is for small business owners such as racehorse training operations and affiliates are eligible to apply for an Economic Injury Disaster Loan and receive an advance of up to $10,000 and this loan advance will not have to be repaid. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue.
Coronavirus Aid, Relief and Economic Security (CARES) Act Resources
Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.
https://covid19relief.sba.gov/#/
http://www.lafourchegov.org/home/showdocument?id=38841
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
