On Friday, March 27, 2020 the federal government passed the CARES act, a massive piece of legislation aimed at providing a lifeline to the economy and the businesses that fuel it. It can be difficult to wade through all of the information in that document, so our parent company, Agero, outlined a summary of what the bill includes, as it relates to small businesses.
Peter Necheles, Chief Legal Officer at Agero, will be hosting a webinar for MBSi customers on Wednesday, April 8th at 2:30 pm CST to further explain the piece of legislation and answer any questions you may have. Please click on the link below to register for this webinar. We look forward to hosting this event for you and to answer any of your questions.
CARES Act Summary for Small Businesses
Payroll Protection Program (PPP)
- Help with payroll, utilities, and rent.
- The Payroll Protection Program will make funds available of up to 2.5 times the monthly average payroll cost of small businesses during the past year (capped at $10 million).
- Small businesses/sole proprietors can start applying as of today, Friday, April 3. Independent contractors and self-employed individuals can start applying on Friday, April 10th. Click here to access the application.
- We encourage you to submit the application as early as possible as there is a finite amount of funding under this program.
- The amounts can be used by you to cover payroll, salaries, rent, and utilities through June 30, 2020.
- PPP loans are set at a 0.50% fixed interest rate, payments are deferred for 6 months, and the loan term is 2 years. There is no prepayment penalty.
- You may not have to pay back these loans provided you have used the funds to cover your payroll costs, utilities, and rent over the 8 week period after the loan is made, and provided that you have maintained employee and compensation levels.
- Help with existing Small Business Administration (SBA) loans you may have.
- This legislation will also permit the SBA to make payments on your behalf for certain outstanding SBA-guaranteed loans for six months. We’ll be watching the SBA to see if they announce the guidelines for this payment program.
- The US Chamber of Commerce has a guide on these emergency loans.
- You may wish to discuss the details of this legislation with your current lender and see if you qualify.
SBA Coronavirus Disaster Assistance Loans
For the latest information and guidelines on COVID-19 please visit the CDC website.
Stay safe and healthy out there,