Small Business Support Programs During COVID-19
Resources to Keep Your Finances, Employees and Physical Property Safe
The COVID-19 pandemic has turned the world upside down. Business owners ask questions such as, “What will my business look like a month from now? How about five months or five years from now?” It’s impossible to know, but you can act quickly and decisively to protect your business. This guide discusses issues such as financial assistance, security systems and employee safety.
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Financial Assistance Programs
The CARES Act, signed into law on March 27, 2020, introduced temporary programs to help small businesses in the United States. Additional government programs are likely to follow. The Small Business Administration website is a good place to start for information and forms.
Paycheck Protection Program
Full loan forgiveness for small businesses to keep their workers on the payroll
SBA to completely forgive loans if a business keeps all employees on the payroll for eight weeks and uses loan money for payroll, rent, mortgage interest or utilities
The loan forgiveness amount decreases if a business doesn’t maintain salary levels and a full employee roster
Loan amounts generally equal 2.5 times the borrower’s average monthly payroll expenses
Many lenders participating; businesses should contact lenders they regularly work with (otherwise, use this tool)
For loans with balances after forgiveness, 1% maximum interest rate and 2-year maturity
No personal guarantees or collateral required