Small Business Financial Assistance

Small Business Overview (1-500 employees)

The definition of small business is organizations with 500 or fewer employees, including 501(c)3
organizations and private practices.

Intent / Overview:

  • $349b earmarked for small businesses out of the $2T bill.
  • To provide debt relief on existing loan.
  • Cover payroll expenses and mortgage interest and related utilities
  • Assist with rent expenses, employer tax contributions, etc.
  • Loans referred to as “paycheck protection loans” and are fully guaranteed by the federal
    government until 12/31/2020.

Program Details:

  • Eligible businesses for small business loans are those with 500 or fewer employees.
  • Loan commitments during period of February 15, 2020 and ending June 30, 2020.
  • Entities must maintain its employment level as of March 24, 2020 and until September 30, 2020,
    as deemed practical and to not exceed a reduction of 10% from this date.
  • Individual loans estimated to cover six weeks of payroll, capped at $1,540 per week per
  • Maximum loan amount to be the lesser of $10m or a company’s average total monthly payroll
    expense for the previous year, multiplied by 2.5.

    • Limited provisions to potentially allow for loans to be forgiven and therefore be a grant.
      The amount to be forgiven equates to the total payroll costs, mortgage interest, rent,
      and specific utility payments during the 8-week period mentioned above.
    • To apply for forgiveness, employer must submit documentation verifying the number of
      employees and pay rates, cancelled checks reflecting mortgage, rent and utility
    • Reduction in forgiveness if employer reduces workforce during the 8-week period
      compared to other periods in 2019 or 2020 or reduces salary paid by
  • Application Process / Criteria:
    • To be available no later than 10 days after passing of bill and available until June 30th.
    • Businesses must have proof of previous six weeks of payroll and then verify payment to
      employees for eight weeks after receiving the loan.
    • Banks will be responsible for facilitation and deployment of funding through the Small Business Association (SBA) via a newly developed government lending agency.
    • Federal Reserve plans to deploy a new program called the Main Street Business Lending Program to complement the SBA with the lending responsibilities.
  • For those with existing SBA loans, principal and interest will be waived for six months.

Economic Injury Disaster Loans (Expanded access by the CARES Act)

Payroll Taxes

  • Loans to be provided and will allow for deferment of payroll taxes. While not forgiven, this
    provides an immediate cash relief.

    • Specifically, tax credits will be issued, thereby allowing them to defer on related taxes in
      order to pay employees.
    • Delay for all of 2020, pay 50% in 2021 and the remaining 50% in 2022.
    • Businesses must continue to employ their employees through the virus (No specific
      timeframe parameters provided), even those that have / are in process of closing.
  • Credit against the employer’s 6.2% share of Social Security payroll taxes for 2020 equal to 50%
    of the qualified wages paid to each employee ending on 12/31/202.

    • Operations must have been partially or fully suspended during any calendar quarter for
    • Business remained open, but gross receipts for any quarter less than 50% of the same
      quarter in 2019. Credit to be applicable for each respective quarter until the point in
      which receipted are at least 80% of the comparable quarter in 2019.
    • Above employee retention not available for those that take part in the payroll
      protection loan program.
  • Increased timeframe and amount for unemployment insurance.
  • For pass-through businesses (Those not subject to corporate income tax such as sole
    proprietorships, partnerships, and S corporations) would realize ‘loosened’ net operating losses.

Mid-sized Business Overview (500-10,000 employees)

Organizations between 500 and 10,000 employees. Hospitals fitting this definition are being supported by the specific hospital provisions already summarized but may also be eligible for these mid-sized business provisions.

  • Annualized interest rate to not exceed 2%. For first 6 months, loan may be subject to no
    principal or interest due.
  • Funds received to be used to retain at least 90% of the recipient’s workforce, at full
    compensation and benefits, until September 30, 2020.
  • May not pay dividends or repurchase any shares of entity.
  • May not outsource or offshore jobs for the duration of the loan and subsequently, two years after repayment of the loan.
  • Business must remain ‘neutral’ in any union organizing efforts during the loan.

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