Month: March 2020 Page 1 of 2

The Treasury Department has released guidance, information and the borrower application for the Paycheck Protection Program and has indicated April 3 as the date that applications will be available for processing. Please click here for the Treasury Fact Sheet and Click Here for the Loan Application recently released by the Treasury.

The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.

The loan amounts will be forgiven as long as:

The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and
utility costs over the 8 week period after the loan is made; and employee and compensation levels are maintained. … Read More

SCAM Alert – CoronaVirus Stimulus Checks and Loan Programs

By Kellie Harris

On March 31, 2020

In Federal, State/Local

Sadly, it did not take long for scammers to take advantage of the programs being offered to help individuals and businesses through this current situation. Don’t let your guard down. Remember, the IRS and banks will not contact you for banking information for the stimulus nor should you pay anyone a fee to process your stimulus check. The Federal Communications Commission (FCC) is receiving reports of potential scams, warning on its website:

Many consumers will receive checks as part of the federal government response to the coronavirus. No one will call or text you to verify your personal information or bank account details in order to “release” the funds.… Read More

SBA Economic Injury Disaster Loans and Loan Advance

By Kellie Harris

On March 31, 2020

In Federal, Financial Resources

SBA Economic Injury Disaster Loans and Loan Advance

Overview

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides for an emergency advance of $10,000 to small businesses and private non-profit organizations affected by COVID-19. In order to receive the advance, you must apply for the Economic Injury Disaster Loan (EIDL) and request the advance at the end of the application process. The loan advance funds will not have to be repaid even if the EIDL application is denied. The EIDLs are up to $2 Million with terms up to 30 years and interest rates of 3.75% for small businesses and 2.75% for non-profits.… Read More

Paycheck Protection Program – Be Prepared

By Kristen McCabe

On March 28, 2020

In Federal, Financial Resources

As mentioned in our previous email and blog post, on Friday President Trump signed a $2 trillion stimulus package. In a move designed to keep small businesses afloat, the CARES Act allocates $349 billion to loans the Paycheck Protection Program loans under the Small Business Administration. We provided details on the Program in a previous post.

Lenders are working out the final details with the Small Business Administration (SBA), but you can take steps now to prepare for the application process to avoid delays. Applications may be ready to be processed as early as next week. We suggest that you contact your bank and ask if they are qualified SBA 7(a) lenders and participating in the Payback Protection Program.… Read More

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Trump signs $2.2 Trillion Coronavirus Stimulus Bill

By Kristen McCabe

On March 27, 2020

In Federal

President Trump has signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act just a few hours after the House of Representative passed the legislation. The historic $2 trillion economic recovery package includes direct payments to individuals, significantly expanded unemployment coverage, business relief through payroll credits and attractive SBA funding options, and significant resources for health care facilities in dire need of relief.

The White House, Treasury Department, Small Business Administration, and other agencies now must quickly implement the law to flood the economy with economic relief. Over 3.3 million employees filed for unemployment last week. The law authorizes Treasury to send $1,200 payments to millions of Americans and creates programs to disburse close to $1 trillion in business loans and guarantees to millions of large and small companies throughout the entire economy.… Read More

Federal Coronavirus Aid, Relief and Economic Security (CARES) Act

By Kristen McCabe

On March 26, 2020

In Federal

As of today, the Coronavirus Aid, Relief and Economic Security (CARES) Act has been passed by the Senate. As of this writing, the CARES Act still requires approval from the House and the President’s signature before becoming law. Included in this Act is the authorization of $349 billion of federally guaranteed loans to qualifying small and medium sized businesses through the expansion of the SBA 7(a) with the “Paycheck Protection Program.” The Senate debated the legislation before it was approved late last night and the House is expected to vote on it tomorrow.

The CARES Act provides more significantly expanded options for relief to both individuals and businesses, including changes to tax policy.… Read More

SBA Economic Relief for Businesses Impacted by Coronavirus (COVID-19)

By Kristen McCabe

On March 26, 2020

In Federal, Financial Resources, State/Local

In response to the Coronavirus (COVID-19) outbreak, city, state and national governments are offering various types of relief for small businesses. Below is a summary related to relief offered by the Small Business Administration (SBA) related to the epidemic, we suggest you apply as soon as possible as processing delays are expected. The SBA has indicated that online application will result in the fastest method to receive a decision.

The SBA has made Economic Injury Disaster Loans (“EID Loans”) available for qualifying small businesses and non-profit organizations that have suffered economic injury as a result of the Coronavirus epidemic. The loans may be used to pay fixed debts, payroll, accounts payable and other ordinary expenses that are not able to be paid as a result of the epidemic.… Read More

Pennsylvania COVID-19 Working Capital Access Loan Information

By Kristen McCabe

On March 26, 2020

In Federal, Financial Resources, State/Local

Pennsylvania COVID-19 Working Capital Access Loan Information

Program guidelines for CWCA, a program supplying working capital to businesses negatively impacted by the COVID-19 pandemic, were approved by the PIDA (PA Industrial Development Authority) Board on March 23, 2020. Please contact your county’s Certified Economic Development Organization (CEDO) for where to submit the application. Some counties are setup to receive applications.
A list of county CEDO organizations can be found here: https://dced.pa.gov/cedo/

PROGRAM DETAILS:

Eligible Businesses: Any for-profit businesses located in PA with 100 or fewer employees worldwide may qualify for disaster relief loans. Your application must be processed through the CEDO designated for the county where your business is physically located.… Read More

COVID-19 Working Capital Access Program (CWCA)

By Kristen McCabe

On March 25, 2020

In State/Local

Program Details:

Stimulus Deal Reached

By Kristen McCabe

On March 25, 2020

In Federal, Financial Resources, State/Local

Stimulus Deal Reached

March 25, 2020

The White House and congressional leaders from both parties reached a $2 trillion stimulus deal early Wednesday that will include direct payments to most Americans and an unprecedented amount of money to small businesses that have been pushed to the brink.

“Ladies and gentlemen, we are done,” declared White House legislative affairs director Eric Ueland just before 1:00 AM this morning. Although the fine details of the plan haven’t been released, there will be $250 billion set aside for direct payments to individuals and families, $350 billion in small business loans, $250 billion in unemployment insurance benefits, and $500 billion in loans for distressed companies.… Read More