New coronavirus relief package signed – paycheck protection loans funded again
April 23, 2020 – A new $484 billion coronavirus relief package has been passed by Congress and signed by President Trump. Among other measures, the package provides new funding for forgivable Paycheck Protection Program loans to help small business owners hold onto their employees. This program ran out of funding in the first 13 days after 1.6 million loans were approved.
As an advocate for your business, we wanted to let you know how this new relief package could help you out:
1) Paycheck Protection Program Loans
$320 billion will go to helping companies with 500 or fewer employees keep their teams intact.
- 1% interest rate
- Covers expenses for Feb. 15 – June 30, 2020
- Provides 2.5x your monthly payroll costs (up to $10 million)
- Payments may be deferred for six months
Loans may be forgiven if you keep all of your employees on the payroll for eight weeks and use the loan for payroll, rent, mortgage interest or utilities. Your loan may be partially forgiven if you don’t meet all of the criteria but meet other conditions. More details here.
$60 billion will be set aside for medium, small and community lending institutions to resource smaller companies that may have a harder time getting loans. Critics have charged that larger chains received loans during the first round while many smaller companies missed out.
2) Small Business Association Disaster Relief
The new relief package provides an additional $60 billion to the Small Business Association for disaster relief. $10 billion will go to grants and another $50 billion will go to disaster relief loans.
You could qualify for an Economic Injury Disaster loan if the coronavirus crisis has severely impacted your business and caused a drastic drop in income.
- Interest rate is 3.75% for small businesses and 2.75% for non-profits
- Can be used to pay fixed debts, payroll, accounts payable and other bills
- Long-term repayment options available – in some cases, up to 30 years
Ready to apply now? Complete your worksheet at Disaster Loan Assistance.
Want to learn more about this program? Visit Coronavirus Disaster Assistance.
In addition to helping out business owners, the new coronavirus relief package provides $75 billion for cash-strapped hospitals and health care providers and $25 billion for coronavirus testing. The package also requires states and localities to outline their plans for testing before taking steps to reopen their economies and requires the Trump administration to establish a national strategy to help them out.
As an advocate who believes in your business, we’re sharing resources and guidance that could help you out right now. Because we know you want to do everything you can to save money, we’re also here for you with free quotes that could lower your rates on business insurance (or even improve your coverage). Ask a licensed Mylo agent to review your current policy and try to beat it.
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