The COVID-19 pandemic has created much uncertainty and many consequences for small businesses. From having to close storefront locations to potential layoffs and more, small businesses are facing significant changes and hardships. Because of this, the government has crafted and passed a plan to provide some much-needed assistance in the form of a $2 trillion relief package. A large percentage of this package will go toward supporting small businesses with 500 employees or fewer.
The relief package is composed of a number of different programs to help keep the economy stimulated, and small businesses running. For small businesses currently experiencing negative effects of the pandemic, the biggest factor in the plan is the “Paycheck Protection Loans” initiative.
This $350 billion loan program is an effort to help small businesses retain their employees, while still being able to afford daily obligations. The main goal of providing these loans to small businesses is to ensure employees are continuing to receive a regular paycheck. If an employer is able to keep their employees on their payroll through June 2020, the amount loaned to them for costs that meet the set eligibility requirements would be forgiven. However, if there are layoffs or reductions in pay during this period, the total of the forgiven portion of the loan would be reduced.
A small business can apply for up to $10 million of relief through this loan, and the money can be used to cover up to two-and-a-half months of payroll, as well as other expenses that include rent, utilities, and existing debt. “Paycheck Protection Loans” will have a low interest rate of no more than 4%.
At Evolve, we are here for your business through all financial challenges. Our proven techniques help small and medium-sized businesses during every phase – including economic uncertainty. Contact us by phone at (847) 749-1851 or by email at email@example.com to get started on a financial strategy for your business and for more information about government assistance for small businesses during COVID-19.