COVID-19 Cares Act Going Live April 3rd

VERY IMPORTANT – MONEY SHOULD BE AVAILABLE ON APRIL 3RD-

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. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

The best way to get relief funds from the CARE ACT is to go to your local bank first and see if they can help. If not we can assist you with application w/ no fees charged.  Please enter your info in our contact form if you need help

reactrelief.info/contact-us/

We have recently been provided with information we wanted to share to help our small business clients and referral partners. Here is a summary of what we have learned. Please note this still a fluid situation and some of these items might be subject to change:

A few important notes:

  • The Payroll Protection Loan Program will be rolled out on April 3rd (this Friday). Any non-lending institution soliciting applications is trying to collect data as there is no formal way to apply (yet). The approved lenders will be able to take and process applications starting on this date. 
  • The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
  • The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
  • More information can be found here (including a sample application): 

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources