Small Business Administration (SBA) Disaster Loans are now available. Visit their site to learn how you may qualify.
Save Small Business Fund:
Federal Coronavirus Aid, Relief, and Economic Security Act (CARES)
Coronavirus Emergency Relief Legislation:
The U.S. Senate unanimously passed a $2 trillion bill that will provide relief to states and enhance federal assistance programs to address the ongoing health crisis. The U.S. House is expected to take up the measure on Friday. The legislation would send $1,200 checks to many Americans under a certain income threshold, create a $350 billion loan program for small businesses, and establish a $500 billion lending fund for industries, cities and states. Other provisions include payroll tax delays and other tax fixes for businesses and, importantly, $140 billion for hospitals. Here is a copy of the final bill and a section-by-section analysis. Additional information and links on the bill are included below.
The Paycheck Protection Program (PPP)
PPP Reconcilation Template
All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries.
Maximum loan amount:
Up to $10 million is available.
Available if proceeds are used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs).
All loans under this program will have the following identical features:
Visit treasury.gov/cares for more information on SBA’s assistance to small businesses.
UPDATE ON (PPP)
ABC became aware of an issue within the SBA's Interim Final Rule (IFR) for the Paycheck Protection Program. This issue was also raised in a letter from AGC; however, it is ABC's view at this time that while AGC's interpretation raises an alarm for welcome clarification in the guidance, the language included in the IFR does NOT impact the eligibility of ABC members with fewer than 500 employees applying for PPP loans. The IFR language is admittedly, poorly written and ABC believes that clarification would be helpful for businesses that are applying for these loans.
While we encourage members to read the entire document, you'll find assistance in the attached document as follows:
The SBA and Treasury confirmed ABC’s interpretation of the IFR and addressed this issue in a release of FAQs for lenders and borrowers. The FAQs further state that borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule. The U.S. government will not challenge lender PPP actions that conform to this guidance,1 and to the PPP Interim Final Rule and any subsequent rulemaking in effect at the time.
Importantly in this document, it clarifies that businesses do not have to qualify as both a small business concern AND have 500 or fewer employees. Please see the FAQ that specifically addresses this issue below. ABC continues to urge eligible members in need to apply for PPP loans.
As mentioned in yesterday Federal Update, the next legislative package is likely to replenish funding for PPP loans. Beyond administrative hiccups in the programs rollout, the biggest concern has been that the PPP program might prove too popular and small business owners are concerned that if they aren’t among the first in line, they might be left behind.
The Trump administration and the program’s congressional champions have moved quickly to tamp down concerns:
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