Coronavirus

Small Business Stimulus Package Update

Important Industry
Information

Borrowers who are interested in obtaining a Disaster Assistance Loan from the U.S. SBA, which is administered directly by the U.S. SBA, should be directed to one of the following contact points: 

– Call 1-800-659-2955 (TTY: 1-800-877-8339) or 

– e-mail disastercustomerservice@sba.gov 

– website to determine eligibility: https://disasterloan.sba.gov/ela/Declarations 

1.                Borrower eligibility:

  •   small business concerns meeting the SBA’s size standards;
  •   any business with no more than 500 employees (across all locations);
  •    certain hospitality and food and beverage businesses, provided the business does not employ more than 500 employees at any location;
  •   individuals who operate under a sole proprietorship or as an independent contractor and eligible self-employed individuals.

2.            The maximum loan amount is $10M, in most cases determined by 2.5 months of the business’s payroll costs, based on average total monthly payroll costs for the 12-month period before the loan is made.   Payroll costs include the sum of compensation for the following payments: 

  • salary or wages; 
  • cash tips or equivalent; 
  • vacation, parental, family, medical or sick leave; 
  • allowances for dismissal or separation; 
  • group health care benefits, including insurance premiums; 
  • retirement benefits; and 
  • employer payroll taxes (State or local). 
  • Payroll costs do not include the following: 
  • compensation of any individual in excess of $100K (annualized); 
  • federal withholding taxes (both employer and employee); 
  • compensation for any individual whose principal place of residence is outside the United States; 
  • qualified sick leave or family leave wages for which a credit is claimed under the recently enacted Families First Coronavirus Response Act a/k/a “Phase 2” Coronavirus Response Bill. 

3.            In addition to any allowable uses under the Small Business Act, borrowers may use loan proceeds for the following purposes through June 30, 2020: payroll costs; 

  • the continuation of group health care benefits during paid sick, medical or family leave, and insurance premiums; 
  • employee salaries, commissions or similar compensation; 
  • mortgage interest, rent and utility payments; and 
  • interest on debt obligations incurred before February 15, 2020. 

4.            Borrowers must maintain an average monthly number of full-time equivalent employees (FTEs) through June 30, 2020 at a level not less than the FTE monthly average during the periodFebruary 15, 2019 through June 30, 2019 

 

HAVE A CPA FIRM PROCESS THE LOAN APPLICATION FOR YOU