As you may have heard on March 27, 2020 Congress passed the CARES Act which included funding of programs developed to assist small businesses in maintaining their workforces and sustaining business during and after Covid-19.
Some Business Resources
- FFCRA & CARES Act Program Comparison sheet.
- Coronavirus Emergency Loans Guide & Checklist
- Small Business Guide to CARES Act
- NATP CARES Act Summary
- IRS Economic Payments What you need to know
- Express Bridge Loan Pilot Program Guide
Currently, these programs are run by the Small Business Administration (SBA).
Of these programs TWO are most important:
#1 Economic Injury Disaster Loans (EIDL)
This loan is handled directly by the SBA.
Note: When applying make sure to “CHECK THE BOX” located in the middle of the 4th screen that states “I would like to be considered for an advance up to $10,000”. At this time, it is unknown whether this specific loan will be forgiven.
This initial process is straight forward and should take no more than 20 minutes.
The SBA will follow up via email in approximately a week or so to request additional data.
#2 Small Business Payroll Protection Program (PPP)
This loan program provides coverage for up to 8 weeks of payroll, certain payroll benefits, and other business operating expenses. By participating in and meeting the guidelines of this program businesses may qualify for forgiveness of all or a portion of the loan.
This program is ONLY available through banks. As of today, most banks are prioritizing processing applications for current customers first and then opening the application process to new customers. Please contact your local bank to apply. Attached is an application to save time, although some banks may have a portal to apply online.
For anyone who received support under the Payroll Protection Program (PPP) since late April of this year, here is a link to the application required to request loan forgiveness. For most recipients, the applications will be applicable beginning in mid-June, 2020.
Resources for this Program
- PPP Borrower Application Form
- PPP Borrower Information Fact Sheet
- PPP Lender Information Fact Sheet
- PPP Small Business Overview
- PPP Loan Forgiveness Application
Note: After applying you will need to provide your bank with a copy of 2019 IRS Form 941 for all Quarters during 2019 or at a minimum Quarter 1 from 2020 if you are a new or seasonal business. At this time, guidance is yet unknown on 1099 and Self-Employed for the PPP.
The following banks MAY accept applications from NEW customers:
Baystate Savings Bank, Commerce Bank, Southbridge Credit Union, Webster Five, and Workers Credit Union.
Please feel free to contact our office via phone (508) 332-6572 or email Tax Credit Advisors if you need further assistance or have any questions.
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