• March 31, 2020
  • KawatraCpa
  • 0
  Economic Injury Disaster Loan Paycheck Protection Program  
Eligibility Companies and with not more than 500 employees, including cooperatives, ESOP’s, and nonprofit organizations, sole proprietors, the self employed and independent contractors Companies with the greater of no more than 500 employees, or their applicable employee size standard for their North American Industrial Classification System, 501 (c)(3) non-profits with fewer than 500 employees. Sole proprietors, the self-employed, and independent contractors Must have been in operation as of 2/15/20  
Use of proceeds Pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Payroll, group health benefits, salary and employee commissions, interest on mortgages, rent, utilities, and interest on debt incurred before February 15,2020  
Max Loan amount up to $2,000,000 The lesser of $10,000,000 OR   For companies that have been in business for a year: The average monthly payroll for the preceding 12 months multiplied by 2.5; OR   For seasonal businesses: Avg. total monthly payroll costs for a 12-week period from 3/1/19– 6/30/19 multiplied by 2.5; OR   For companies that were not in business before the period February 15, 2019 – June 30, 2019:   The average monthly payroll for the period January 1, 2020 through February 29, 2020 multiplied by 2.5; And   The outstanding amount of any emergency loan made from 1/31/20 until 3/27/20.  
Limitations on payroll None Payroll costs excludes compensation paid to individuals including the self employed above $100,000  
SBA Guaranty Fees None None
Rate Rate 3.75% for profit 2.75% non-profit No more than 4 %  
Payment Payment Deferred for one year Payment Deferred for one year  
Term Upto 30 years 10 year after forguveness  
Personal Guarantee Loans over $200,000 will require a personal guarantee None  
Collateral Collateral Collateral required on EIDL over $25,000; UCC on all business assets and possibly real estate None  
Forgiveness An advance of $10,000 will be provided as a grant within three days of application and is not required to be repaid if loan denied Equal to the amount spent by the borrower during an 8-week period after the   origination date of the loan on payroll costs, interest payment on any   mortgage, rent, utilities, or other interest. Forgiveness amount will be reduced   by multiplying the loan amount by:   Current FTE’s divided by   FTE’s from 2/15/19 to 6/30/19;   or FTE’s from 1/1/20 to 2/29/20   Additionally, forgiveness amount   Current FTE’s divided by   FTE’s from 2/15/19 to 6/30/19;   or FTE’s from 1/1/20 to 2/29/20   Additionally, forgiveness amount is reduced by pay reductions in excess of 25%  
KawatraCpa
Author: KawatraCpa

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