While circumstances are still somewhat fluid, I wanted to pass along some of the things I’ve seen/heard/am working on so that you can find out more, and possibly take advantage of some of the opportunities that are becoming available.
Covid Stimulas Checks. This is a pretty good article on the potential $1200-per-adult, $500-per-child checks that have been announced. Actual amounts depend on your income. Depending on how you’ve filed taxes in the past, you may be seeing money directly deposited in two to three weeks. There is also some information here regarding unemployment.
Paycheck Protection Program. This article goes through the PPP. In short, employers and independent contractors can borrow money from an SBA lender (i.e. a bank) to cover payroll – or lost income, in the case of an independent contractor – as well as mortgage interest, utilities, and a couple other bits and pieces, then have some or all of the loan forgiven. It looks like employers might be able to borrow about 2.5 x average monthly salaries; ICs about 2.5 x what would have been monthly income, including commissions. There are caps. For example, the cap for payroll/income is $100,000 annual. So nothing in excess of $100,000 annual for an individual can be figured in. SOME OR ALL OF THE LOAN MIGHT BE FORGIVEN. Depending on how and when the money is used. See item #4 in the article. NO PERSONAL GUARANTY is required. But fraud will be prosecuted.
Economic Injury Disaster Loans (Covid EIDLs). Up to $10,000 in ‘grant’ (meaning it doesn’t need to be paid back if used for “maintaining payroll and other operating expenses”), and more beyond that as a loan. See the attached doc on this, and for more info on the above items. You can also go here for more info: https://www.uschamber.com/co/run/business-financing/commonly-asked-questions-coronavirus-small-business-loans I will be working through the PPP and EIDL processes with our partner bankers and accountants. As I learn more I will try to pass it along.
Posted by Mike Seebinger on