REGION — The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27. In addition to providing unemployment for Americans who are out of work because of the novel coronavirus (COVID-19) pandemic, the $2.2 trillion package allocates $350 million to help small businesses keep employees on the payroll. This program, known as the Payment Protection Program, is just one of the many resources available to small business owners during this crisis.
Provides 100 percent federally guaranteed loans to small businesses that maintain payroll during the COVID-19 pandemic
These loans may be forgiven if borrowers maintain their payrolls, or restore them after the crisis has ended
Some applicants who may be eligible include small businesses, nonprofits and veterans organizations with fewer than 500 employees, independent contractors, sole proprietors and self-employed individuals
The loan can be up to 2.5 times the borrower’s average monthly payroll costs, not to exceed $10 million
Borrowers are eligible for loan forgiveness based on what they spent on items like payroll, interest on a mortgage, rent on leasing agreement, payments on utilities, additional wages to tipped employees
For more information about the Payment Protection Program, including how to calculate your business’s payroll costs, visit www.bit.ly/USChamberInfo.
Loans can be applied for through a Small Business Association (SBA)-approved lender. The list of approved lenders is currently in flux, but you can check with your local bank, or visit www.sba.gov for updates
An EIDL is a lower interest loan of up to $2 million, used to help borrowers pay for operating expenses which they cannot pay themselves due to a disaster
Due to COVID-19, SBA is providing an emergency advance of up to $10,000 through EIDL
The advance does not need to be repaid under any circumstance
First apply for a standard EIDL, then request an advance
Apply for a loan through the SBA at www.bit.ly/applyfordisasterloan.
The list of programs and resources is constantly changing, “Information is outdated hours after it comes out,” as Lisa Burns of the Greater Honesdale Partnership said when asked about this topic. Instead of publishing information that might be incorrect by the time you see it, here is a list of local organizations that are actively updating their websites with information and resources.
Sullivan County Chamber of Commerce, www.catskills.com
Wayne Economic Development Corporation (WEDCO), www.wayneeconomic.com
Northeastern Pennsylvania Alliance, www.nepa-alliance.org
Pursuit Lending (formerly New York Business Development Corporation), www.pursuitlending.com
Support local journalism.
We are making all coverage of the coronavirus available for free. Please consider subscribing so we can continue to bring you the latest news and information on this developing story.
No comments on this item Please log in to comment by clicking here