By Brad Shipp- NESA
Several articles were published this week on the new legislation. (See Below for links to them)
Here is the bottom line
- Small employers and self-employed individuals are given new tax credits and federal payroll-tax relief to pay for the new mandatory benefits. See the article by Mitch Reitman for details
- Both manufacturers and integrators are eligible for SBA loans for two months of payroll, and repayment will be forgiven if CARES Act rules are followed. See the article by Jason Knott for details
- Industry accountant Mitch Reitman has read through the entire economic stimulus package and identified business opportunities for integrators. See the Article by Mitch Reitman
GUIDANCE FOR BUSINESSES AND EMPLOYERS FROM THE SMALL BUSINESS ADMINISTRATION (SBA)
Economic Injury Disaster Loan Program
Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19). Click here to apply. Deadline to apply is December 21, 2020
Download the Fact sheet for Texas
Find more information on the SBA’s Economic Injury Disaster Loans at: SBA.gov/Disaster.
The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
This Program originally expired on March 30, 2020. bit has been extended to March 13, 2021 See SBA Notice
Effective March 25, 2020, (announcement by publication of a notice in the Federal Register will follow), SBA expanded program eligibility to include small businesses nationwide adversely impacted under the Coronavirus Disease (COVID-19) Emergency Declaration issued by President Trump on March 13, 2020 (“COVID-19 Emergency Declaration”). Because the COVID-19 Emergency Declaration covers all states, territories, and the District of Columbia, eligible small businesses under the EBL Pilot Program include small businesses located in any state, territory and the District of Columbia that have been adversely impacted by the COVID-19 emergency. The notice also stated that all references to disasters in the EBL Pilot Program requirements will include the COVID-19 emergency. In the same notice, SBA extended the term of the EBL Pilot Program through March 13, 2021.
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the EIDL loan
Articles of Interest
- How Integrators Can Get Government Loans to Aid Cash Flow During Coronavirus Crisis
3.23.20 – CEPro – The U.S. Small Business Administration is providing low-interest Economic Injury Disaster Loans up to $2M during the coronavirus outbreak.
- How to Get Your CARES Act Money
3.27.20 – CEPro – Both manufacturers and integrators are eligible for SBA loans for two months of payroll, and repayment will be forgiven if CARES Act rules are followed.
- What’s in the U.S. COVID-19 Stimulus Package
3.27.20 – CI – Congress is close to passing a massive $2 trillion stimulus package aimed at saving the economy from COVID-19. Here’s what it’s in it.
- 3 Key Benefits for Small Businesses Found in the Stimulus Package
3.27.20 – SSI – Industry accountant Mitch Reitman has read through the entire economic stimulus package and identified benefits to assist small businesses.
- What Small Business Owners Need to Know About the Families First Coronavirus Relief Bill
3.25.20 – SSI – Small employers and self-employed individuals are given new tax credits and federal payroll-tax relief to pay for the new mandatory benefits.