WHO CARES? Right Now .... You Should ...

In this issue…

  • A payroll loan you might not have to pay back

  • 430 words, total reading time about 2 minutes

The Coronavirus Aid, Relief, & Economic Security act (CARES) was crafted to help American businesses withstand the economic impact of the coronavirus. While government programs can often seem out of reach, there is specific aid in the CARES act for small businesses just like yours.

Of particular & immediate interest is the Paycheck Protection Program Loan Guarantee. Designed for companies with less than 500 employees – including self-employed proprietors and subcontractors – this program offers government-guaranteed SBA loans for up to 2.5 times a company’s average monthly payroll costs, up to $10 million maximum per company

And the loan will be forgiven – yes, you won’t have to pay it back – if the loan is used to cover qualifying costs over an 8-week period.

We cannot think of a CI company that shouldn’t apply for this loan… TODAY.

Here is a summary of the loan guidelines as we currently understand them…

You must certify

  • Current conditions make the loan necessary to support operations

  • Proceeds will be used to retain workers/maintain payroll, pay rent & utilities

Loan amount

  • up to 2.5X average monthly payroll costs (max $10M)

  • up to maximum $100K annual salary, prorated per employee

  • wages, PTO, & benefits including healthcare

  • payroll & income taxes excluded

Loan terms

  • Max int rate 4%

  • Up to 10-year repayment terms

  • Deferred payments for 6-12 months

  • No personal guarantee or collateral

Forgiveness amounts for the 8-week loan period

  • Wages & PTO

  • Group health premiums

  • Interest on the mortgage loan; rent

  • Utilities costs (electric, gas, water, transportation, telephone, internet

  • Forgiveness not to exceed principal

In our many years as business owners, we have never seen a time like this, or a government response like this. We urge you to apply, and make it more likely you come out whole on the other side.

There are details, of course. More info at…


Apply for the Paycheck Protection Loan at your local lending institution.

That’s Not All

This is not the only relief available. CARES also provides for an Economic Injury Disaster loan (EDIL) called the Economic Injury for the Coronavirus loan. It cannot be used for the same costs as the Paycheck Protection loan, and requires a more rigorous application directly with the SBA. But for more complete, longer term capital financing – up to $2M, 30-year terms, no payments for a year – this can provide assurance beyond the 8 weeks covered by the PPL.

Apply for Economic Injury for the Coronavirus loans at www.sba.gov/disaster.

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