Covid-19 Response : Q&As

Questions & Answers

Paycheck Protection Program FAQs

View the Paycheck Protection Program FAQs at treasury.gov: Paycheck Protection Loans FAQs

My Paycheck Protection Loan has Funded! What Now?

What we Know How long do I have to use the funds to be eligible for the forgiveness? Currently, you have eight weeks from the time the loan is funded.   What are covered uses? Payroll costs (which must be 75% of the expenditures) Salaries, wages, commissions, tips (capped on a prorated basis to 100,000 […]

How can I avoid laying off employees?

On March 27, 2020, a $2 trillion stimulus bill was signed into law. The bill covers a lot of different areas, each aimed at helping American individuals and businesses through the severe economic downturn brought on by COVID-19. Included in the bill is money aimed at keeping workers on payrolls; a tax credit for idled […]

How do I qualify for federal assistance during the COVID-19 crisis?

The CARES Act has provided funding for two emergency loan programs overseen by the SBA: The Payroll Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). To qualify for either of these programs, the business must operate within the declared disaster area, and must be a small business, which, according to the SBA, is […]

Do I have to pay back an SBA loan?

Typically, an SBA loan is exactly that, a loan. While the rates and terms are typically very favorable compared to a conventional commercial loan (7 years for working capital loans, 10 years for new equipment purchases, and 25 years for real estate purchases), the CARES-funded loans are intended as economic stimulus, and most business owners […]

How do I apply for the SBA’s Payroll Protection Program?

Companies can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. If you bank with a sizable commercial lender, […]

How does the SBA’s Paycheck Protection Program (PPP) work?

The Payroll Protection Program is, in effect, a government stimulus intended to help employers keep people on the payroll during the coronavirus outbreak. Funds can also be used to cover other basic business expenses. Many business owners will find the PPP very attractive because of its remarkably low interest rate (1%). Even better, if you […]

How does the SBA’s Economic Injury Disaster Loan (EIDL) work?

The Economic Injury Disaster Loan is a low-interest, long-term business loan underwritten by the federal government. The intent is to help business struggling due to loss of income as the result of a large-scale disaster. For this reason, the applicant must have a fixed presence in a declared disaster area. EIDL loans have been granted […]

How much can I rely on business interruption insurance?