Small businesses and sole proprietorships can apply for loans under the Paycheck Protection Program. Independent Contractors and self-employed individuals will gain access to the program April 10. The PPP provides nearly $350 billion for eight weeks of cash-flow assistance to small businesses that maintain their payroll during this emergency.

PPP is a forgivable loan

If the employer maintains its payroll, then the portion of the loan used for covered payroll costs, interest on mortgage obligations, rent, and utilities will be completely forgiven. It’s also retroactive to February 15, 2020, which will help bring workers who may have already been laid off back onto payrolls.

Resources from Treasury: Resources on the Paycheck Protection Program from the Treasury can be found on the Assistance for Small Businesses page.

Overview of the program, click here
If you’re a lender, click here
If you’re a borrower, click here

SBA Economic Injury Disaster Loan Program:

Through the SBA, businesses of all sizes suffering substantial economic injury are eligible to receive low-interest federal disaster loans. Specifically, SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact

The interest rate is 3.75% for small businesses and 2.75% for non-profits

SBA offers long-term repayment to keep payments affordable, up to a maximum of 30 years. Terms are determined case-by-case, based upon borrower’s ability to repay

Tax impacts

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows employers to delay the payment of their 2020 payroll taxes until 2021 or 2022. This is estimated to provide an additional $300 billion of cash-flow assistance for businesses. The legislation reinstated tax provisions allowing businesses to carry back losses from 2018, 2019, and 2020 to the previous 5 years, giving immediate access to tax refunds.