The following information was first provided and published by Colorado's Small Business Development Center.
Congress has approved the largest U.S. stimulus package ever to help provide economic relief to businesses and workers affected by the COVID-19 outbreak. The $2 trillion legislation has now been signed by President Trump.
The bill offers the following aid for small businesses (those with less than 500 employees), 501(c)3s, sole proprietors, and independent contractors
SBA Economic Injury Disaster Loan (EIDL)
Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the outbreak of COVID-19. These loans are intended to assist through the disaster recovery period.
Small Business Emergency EIDL Grants
Small Business Emergency EIDL Grants are direct grants for businesses that apply for but do not qualify for the EIDL program.
Paycheck Protection Loans
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
For borrowers who already had SBA 7A loans in place before COVID-19, $17 billion is allocated to have SBA step in and make six months of principal and interest payments for all SBA backed business loans.
Payroll tax credit
A payroll tax credit for wages paid by businesses that fully or partially close due to Coronavirus.
Payroll tax deferral
Allows businesses to a deferral for payroll taxes owed in 2020. Half would be payable in December 2021 and the other half in December 2022. Businesses receiving other EIDL or Paycheck Protection Loans would not be eligible.
The Federal Government is working diligently on developing the application process for these loans and we will let individuals know that information when it is released and applications are open.
First Southwest Bank is leading COVID-19 recovery for small businesses in Colorado and beyond. As an SBA Preferred Lender and Express Lender, we’re experts at navigating small business programs for you during this difficult time. For more information or an application, email SBA@fswb.com.