These are the basic details of loans available to businesses. They are unbelievable unless regulations put limits on these loans:
- This new law lets any business borrow 2.5 months of payroll, benefits, interest on loans and lease payments.
- The loan is made through a bank that is an SBA approved lender and is guaranteed by the SBA.
- Loan Is nonrecourse to the borrower.
- The loan is forgiven if you don’t cut back on staff and spend the money on the items listed above.
- The debt forgiveness is tax free.
- Any part not forgiven is 10 yr repayment.
- The interest rate is capped at 4%.
- There are no fees to get the loan. The SBA will pay the banks a 5% fee.
Many details to come. The original CARES act was 273 pages long, the bill as finally passed by the senate was 792 pages long. Who knows what all is in this?
Links to Key Items: https://www.sbia.org/resources-for-small-businesses-impacted-by-covid-19/
We are in business to help your business. Stay tuned for more info as it becomes available. We suggest every business start to gather the information to apply for this forgivable loan.