I had mentioned in the respite thread last night that I have been helping my clients with applying for funding through the new legislation. Someone asked if I could share that information.
I’m only reluctant because things are happening so quickly, it’s difficult to keep up and I’m far from an expert on any of this. What I’ve been doing is reading all the documents, news articles and relevant information, and then helping my clients navigate the paperwork for applications. Twice now, we’ve had to reapply as documents requirements have changed. But it gives us something to do. ?
It appears unemployment benefits have been extended to independent contractors, self-employed and others who would not usually qualify for unemployment insurance. Applications are through your state. But here, the state (when the unemployment benefits website is actually working) says that won’t be available until maybe April 3.
Listed below (including links) are the small business resources I’ve been using for those of us trying to keep a small business afloat:
Paycheck Protection Program –
Paycheck Protection Program (PPP) Loans
The program would provide cash-flow assistance through 100 percent federally guaranteed
loans to employers who maintain their payroll during this emergency. If employers maintain
their payroll, the loans would be forgiven, which would help workers remain employed, as well
as help affected small businesses and our economy snap-back quicker after the crisis. PPP has a
host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee
retention and salary levels, no SBA fees, and at least six months of deferral with maximum
deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they
were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program would
be retroactive to February 15, 2020, in order to help bring workers who may have already been
laid off back onto payrolls. Loans are available through June 30, 2020.
Economic Injury Disaster Loans & Emergency Economic Injury Grants
These grants provide an emergency advance of up to $10,000 to small businesses and private
non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury
Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the
advance. The advance does not need to be repaid under any circumstance, and may be used
to keep employees on payroll, to pay for sick leave, meet increased production costs due to
supply chain disruptions, or pay business obligations, including debts, rent and mortgage
That’s all I have so far. I highly recommend talking to your accountant about any of the loan/grant programs and make sure it’s right for your business. There is a lot to unravel in the PPP that’s confusing and I think a professional read is necessary, especially for understanding what will actually be forgiven and what will need to be repaid.
I’d like to open this thread up for anyone who has more information and helpful links and encourage them to post them.
Otherwise, open thread