With many American small businesses hurting from the effects of the coronavirus crisis, the U.S. government has responded by passing the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This $2 trillion stimulus bill has many provisions, some of which will help small businesses obtain much-needed capital.
At the National Small Business Town Hall, held March 27 by the U.S. Chamber of Commerce and Inc., several experts spoke about important aspects of the CARES Act and answered questions from concerned small business owners. The first 20 minutes of this video will give you a really good overview of how the program works.
Many small business owners have been tragically impacted by the Economic Shutdown imposed by the US Government to help aid in the fight against the Coronavirus – (COVID-19). On Friday small business owners can contact an SBA Approved Lender to apply for the Paycheck Protection Program. Below is an overview along with the eligibility guidelines for the program. Act Fast! The more businesses we save the better off we all are!
The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses.
If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable. – SBA.gov
Businesses – including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act – with 500 or fewer employees may apply.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. – SBA.gov
Your Banker Will Likely Need Items Related to the Following:
- 2019 – 941 Quarterly Payroll Reports
- 2020 – 941 Quarterly Payroll Reports for the First Quarter of 2020
- Proof of Lease Payment
- Proof of Utilities
- Signed Copies of your Tax Returns
- Personal Identification
- Articles of Organization
- Not Required to Provide Personal Guarantees or Assets
As always, we are here to serve. If there is anything we can do to support you during this unprecedented time please don’t hesitate to reach out. We would be happy to connect with you an Active Arizona SBA Lender.
We truly believe that the Paycheck Protection Program has the power to SAVE many of our Small Businesses. The more we can save in our community the better off we all are. Keep your talented people! Apply with a local SBA Lender today!
We are all in this together!
Stay safe, this too shall pass.