Supporting Businesses and Individuals Through Uncertain Times
In response to the ongoing coronavirus public health crisis, the federal government has taken unprecedented steps to provide economic relief to individuals and businesses. Several programs have been created to ensure small businesses have the working capital they need to survive during this difficult time.
Loan programs available to help your business include:
- Paycheck Protection Loans: As a part of the CARES Act, $350 Billion in Paycheck Protection Loans are available for businesses with less than 500 employees through the U.S. Small Business Administration (SBA) for the designated period of February 15, 2020 through June 30, 2020. Lender and borrower fees are waived and through the end of 2020 will be increased to 100%. The use of these loans is intended for maintaining payroll, retaining workers and/or to make rent, mortgage and utility payments.
- Economic Injury Disaster Loans: The U.S. Small Business Administration (SBA) is offering long-term, low-interest federal disaster loans for working capital for small businesses and private, non-profit organizations affected by the coronavirus (COVID-19) throughout the United States and associated territories. Loans of up to $2 million are available, with an interest rate of 3.75% for small businesses and 2.75% for nonprofit. Repayment terms vary by applicant, up to a maximum of 30 years, and the loan can cover accounts payable, payroll, debts and other bills. The application for these loans is available online or by mail.
Resources & News
Bennett Thrasher is dedicated to keeping you up to date on the many COVID-19 legislative measures and related resources available. Our articles below capture the latest news and insights.
- Paycheck Protection Program Frequently Asked Questions: The Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). This document will be updated on a regular basis.
- Paycheck Protection Program – Interim Final Rule: The Paycheck Protection Program and loan forgiveness are intended to provide economic relief to small businesses nationwide adversely impacted under the Coronavirus Disease 2019 (COVID-19) Emergency Declaration (COVID-19 Emergency Declaration) issued by President Trump on March 13, 2020. This interim final rule outlines the key provisions of SBA’s implementation of sections 1102 and 1106 of the Act in formal guidance and requests public comment.
- Communicating During the Pandemic: Most small business owners will face a time in their career when they have to communicate about topics that may be uncomfortable. COVID-19 has put small business owners in the position to have many stressful conversations about topics they may not want to discuss.
- SBA Issues Additional Guidance on PPP Loans Favorable to Select Employers: Businesses who have borrowed through the Paycheck Protection Program (PPP), enacted by the CARES Act, are still anxiously waiting for the Small Business Administration (SBA) to provide further guidance explaining how the loan forgiveness amount will be calculated. On May 13, 2020, the SBA did issue additional guidance that will benefit certain employers.
For more coronavirus coverage, visit our blog.
BT is Here to Help
Bennett Thrasher is here to offer the guidance and insights you need during the current pandemic. Contact one of our professionals to learn more about our services.
Services we can provide include:
- Loan Forgiveness Calculations & Documentation Assistance
- Bankruptcy & Restructuring
- Estimated Tax Payments
- Disaster Relief Credits
- Insurance Coverage & Claims Reviews
- Stimulus Package Benefits & Resources
- Small Business Loans
- Considerations for Cash Flow Management
- Payroll Considerations
- Cash Flow Modeling
- Contract Compliance Reviews
- Valuations for Tax
- Secure Remote Access Systems/Endpoint Protection Solutions
- SaaS/Cloud System Integrations and Migrations
- Family Office/Advisory
We are continuing to monitor developments and updates that affect you and will provide you with alerts on a regular basis to ensure you are informed on how to respond to tax and regulation changes as they occur.
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