Protecting America’s Small Businesses & Nonprofits
March 31, 2020
In responding to the financial pain caused by the pandemic, Congress and President Trump have enacted three laws to stimulate economic activity and counter the economic disruption. The most recent law, the Phase 3 bill or CARES Act enacted on March 27, contains provisions aimed directly at businesses with fewer than 500 employees to help them cope and retain their workforce. Included in the $2 trillion CARES Act bill is the Paycheck Protection Program to help small businesses as well as organizations that file as foundations or nonprofits under 501(c)3 of the tax code. Many sportsmen’s groups file as 501(c)3’s, including several SCI chapters.
The Paycheck Protection Program will be run under the Small Business Administration and will make low-interest loans available through private lenders. Loans will be up to $10 million, will have a 4% interest rate, and will cover payroll, group health, and many other costs. They will be processed without SBA review and should process relatively quickly. The PPP loans will also feature a Loan Forgiveness tool to incentivize employers not to lay off workers. For many borrowers these loans will work more like a grant. Sole proprietors, independent contractors, and the self-employed may also be eligible. For more information, or to apply, here is a link (https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources) to the Small Business Administration's COVID-19 Small Business Guidance Loan Resources Website. Under the Content section, click “Paycheck Protection Program.” The website contains info on several other helpful loans. Also , check with your preferred bank or credit union.
–Summary on PPP and Loan Forgiveness from the House Small Business Committee. View The Paycheck Protection Document
—Practical advice in short videos from Northern Virginia financial expert, Jenn Loges of the firm One Degree Capital. (https://info.onedegreecapital.com/blog) She offers daily advice on how much to apply for, the loan terms, and what to expect.
–Many states are offering COVID business relief, so check your State’s economic development or small business website.