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FREE MONEY??? CARES Act - #brokermac
April 03, 2020 at 9:00am | Mac Rogers
MONEY??? Small Business Owners, listen up this could apply to you. There is HOPE and Financial HELP available to you. I wanted to let you know about some programs that are out there to help support all of us through this trying time.
Please note, I am not an Attorney, CPA, or an SBA specialist, you need to verify all of this information. I am just relaying the information provided to me by my trusted advisor.
With the passage of the CARES Act last Friday afternoon, there is finally some relief for small business owners. While the bill is 1,000 (One Thousand Plus) pages there are two key provisions that we want to make sure you are aware of as soon as possible.
They are both SBA related and should help most small business owners. The SBA is offering an Economic Injury Disaster Loan (EIDL). This is a $10K loan advance that will not have to be repaid as long as it is used for economic relief due to COVID-19.
The SBA has streamlined the application process so it can all be done online and only takes about ten minutes. The Online application link should be in the description below.
According to my CPA in addition to the $10,000 (Ten Thousand Dollars available to you up front, you can apply for up to $2Million in additional funding.
The rate of these loans will not exceed 4% and can be spread over 30 years. Currently, the only portion of this loan that will be waived or forgiven is the initial $10,000 and of course this could be subject to change, so be sure to look into
all the details.
The second loan offering is called the Payroll Protection Program (PPP) and have a component of the loan that can be forgiven. Congress has allocated $349 billion to this loan offering. These loans are considered SBA 7(a) loans and are applied
for directly through your bank or credit union.
Here is a brief synopsis of this loan program. Any business with 500 or fewer employees. The business does not have to be shut down completely or partially. Any business that applies is presumed to need the loan and will get it. The only underwriting
standards are the company was in business on February 15, 2020 and had employees for whom it paid salaries and payroll taxes.
These loans are non-recourse, meaning no personal guarantees or liens on business assets. The maximum loan you can receive will equal 2.5 times your average “payroll costs” during the 1-year period before the loan is taken. The portion of the
loan that can be forgiven is equal to the sum of the employer’s:
(A) Payroll costs
(B) Interest (not principal) on any business debts that were incurred prior to February 15, 2020
(D) Utilities, including electricity, gas, water, transportation, telephone and internet access .
These types of items that can be forgiven which are incurred during the 8 week period that begins on the origination date of the 7(a) loan. Please share this video with anyone who is a small business owner, it may be a local professional, ice
cream shop, a candy store, a shirt maker, a Real Estate agent or a Lender.
If you’re a small business owner and you qualify there is hope. I hope this was helpful and again, I”m not an attorney, a CPA or an accountant so you’ll need to do your own due diligence.
This is Mac Rogers with Albert Rogers Realty. As always, make it a great day.