Small Business Stimulus Package Update
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 email@example.com
– 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