Bipartisan legislation has been recently unveiled to provide emergency relief to many people. At KMA Bodilly, we’re closely monitoring the terms of this legislation as it relates to our clients. We’re also able to help your business complete all the necessary paperwork to apply for this assistance. Read the full article here.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is expected to be passed and signed into law today, Friday March 27th. The small-business section of the CARES Act will:
- Create the Paycheck Protection Program, a nearly $350 billion program to provide eight weeks of cash-flow assistance to small businesses through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would largely be forgiven, which would help workers to remain employed and affected small businesses and our economy to quickly snap-back after the crisis.
- Allow the Paycheck Protection Program to cover payroll costs, paid sick leave, supply chain disruptions, employee salaries, health insurance premiums, mortgage payments, and other debt obligations to provide immediate access to capital for small businesses who have been impacted by COVID-19.
- Provide $265 million for grants to offer counseling, training, and related assistance to small businesses affected by COVID-19 to SBA resource partners, including Small Business Development Centers and Women’s Business Centers and $10 million for the Minority Business Development Agency’s Minority Business Centers and Minority Chambers of Commerce.
- Allow for expedited access to capital by establishing a $10 billion program for small businesses who have applied for an EIDL loan to request an advance of up to $10,000 on the loan to provide paid sick leave to employees, maintaining payroll, and other debt obligations.
- Require SBA to pay all principal, interest and fees on all new and existing SBA loan products including 7(a), Community Advantage, 504, and Microloan programs for 6 months, and provides $17 billion for this purpose.
We are available to answer any questions during this unprecedented time and to assist with loan applications for the Paycheck Protection Program. Please email your client relationship manager today so that we can send you an engagement letter and start the process.
Contact us today to learn more.