Assistance from Federal and State Governments
With all the new information coming out daily, we want to clarify the two separate CARES Act SBA Loan Programs in the hopes this may be helpful to you.
Paycheck Protection Program
The first option being the Paycheck Protection Program. This loan is eligible to businesses of 500 employees or less and 501(c)3 nonprofit, veterans’ organization, and tribal small business. The loan amount is 2.5 times your average monthly payroll costs including independent contractor payments limited to $10 million.
- 2 year loan
- 0.50% interest rate
- Loan Forgiveness
- Amount of loan used to pay payroll, rent, utilities, and mortgage interest from February 15, 2020 through June 30, 2020
- Debt forgiven will not be considered taxable income
Treasury Secretary Mnuchin said loans/applications should be available Friday April 3, 2020.
Economic Injury Disaster Loan
The second option being the Economic Injury Disaster Loan. This loan is available to small businesses, however farmers do not qualify. The loan comes directly through the SBA link https://covid19relief.sba.gov/#/. Loans amount up to $2 million in assistance that can provide economic support to small business to help overcome temporary loss of revenue.
- 3.75% interest rate for small business
- 2.75% interest rate for non-profits
- Length of loan is determined on a case by case basis, based upon each borrower’s ability to repay with a maximum of 30 years
The following are links may be useful and help you in discussions with your financial and tax advisors, and you must determine your qualification for any program or other option for relief or assistance, and what options are appropriate for you and your business:
Florida Reemployment Assistance Application
Paper reemployment assistance applications can be downloaded through the following link: