The $2 Trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act became law on March 27, 2020. It provides an unprecedented level of emergency assistance for individuals, families, and businesses affected by the COVID-19 epidemic. It also includes aid to independent contractors and sole proprietors.
Eligible applicants for Economic Injury Disaster Loans (EIDL) can receive up to $10,000 almost immediately (3 business days from filing). These funds can pay for payroll maintenance, mortgage interest, lease rent, utilities, and likely to a larger list of business-related expenses that new regulations will outline in the days and weeks to follow.
Separately, a new loan program, the Paycheck Protection Program (PPP), provides potentially forgivable loan proceeds that go towards sole proprietor income or independent contractor compensation, not more than $100,000. A good starting point for PPP funding would be to seek out a local bank of your choice that is an SBA-approved lender and fill out an application between now and June 30, 2020. The bank that provides the PPP loan will be the same bank that decides to what degree the loan amount is forgivable after conferring later with the business owner.
The hyperlinks provided above published by the U.S. Senate Committee on Small Business and Entrepreneurship that may be of some help. Be aware of the fact that federal regulations and Frequently Asked Questions (FAQ’s) most likely will be coming out in a steady stream over the near term intended to bring some clarity to these new and complex laws.
Of course, before acting on this opportunity, you should seek the advice of business, tax, legal, and other professional advisors of your choosing to fully understand more about the stimulus package benefits. Our intent here is to keep you informed of any potential benefits that may assist you during this challenging time.
Southwestern Family of Companies