We hope everyone at your company is ok during this uncertain time. This article highlights two immediate resources your company may qualify for under the CARES Act: the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP).
#1 Economic Injury Disaster Loan (EIDL)
- The online application for EIDLs is open right now and you can find it here on the SBA’s website
- The loan offers disaster assistance of up to $2 million with interest rates of 3.75% for small businesses and 2.75% for nonprofits.
- You can request an immediate advance of up to $10,000
#2 Paycheck Protection Program (PPP)
- Here is a link to the application and accompanying borrower guide
- Lenders may begin processing applications starting this Friday, April 3rd
- The Program offers loans of up to $10 million at an interest rate of 0.5% through SBA-approved lenders where the proceeds are used to pay employees and the loans forgiven if certain requirements are met
- You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program
- The PPP loans:
- Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments
- Are 100% forgivable if used for the above purposes
- Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals. Some companies with more than 500 employees may qualify if they meet the SBA size standards for those industries.
Note – businesses can apply and receive both an EIDL and PPP, however they cannot be used for the same purpose. Businesses that have had to furlough or lay people off can rehire those employees and use the PPP to cover payroll. Information regarding the CARES Act is dynamic and we will provide more information as it becomes available.
Everyone at The Menke Group is here to help you and your ESOP thrive. Be well and please let us know if you have any questions or need any assistance.
