Apr 01, 2020
Webinar: CARES Act Crisis Relief
On Friday March 27, 2020, The United States Congress passed a $2 trillionresponse bill, known as the CARES Act, aimed at providing relief for individuals and businesses that have been negatively impacted by the global health crisis. As an MSP and business owner, there are a number of provisions in this bill that you should be aware of, both for you and for your customers.
The bill provides two key programs for our US-based partners:
Paycheck Protection Program: Under this program, $350 billion has been dedicated to preventing layoffs and business closures among small businesses during the outbreak. Companies with 500 employees or fewer can borrow as much as 250 percent of their average monthly payroll expenses (up to a total of $10 million) at a 4% fixed rate and a 10-year term. Paycheck Protection Program loans will be forgiven if all employees are kept on the payroll for eight weeks.
Small businesses and sole proprietorships can apply for the Paycheck Protection Program beginning April 3, 2020. Independent contractors and self-employed individuals can apply beginning April 10, 2020. The program will be available through June 30, 2020.
Economic Injury Disaster Loans: Under the Economic Injury Disaster Loan (EIDL) program eligible businesses can receive up to $2,000,000 at a 3.75% interest rate with a 30-year term. Economic Injury Disaster Loans are not new, but the program has been expanded to include an additional emergency advance of up to $10,000 to small businesses harmed by the global health crisis.
Loan proceeds from both programs can be applied to payroll expenses, rent, utilities and other operating expenses that can not be paid due to the impact of the global health crisis. Self-employed, independent contractors and gig economy workers are all eligible for these benefits. For both programs, payment is deferred for 6 to 12 months. This application, created by Kirkland and Ellis, Quickbase, and Vista Equity Partners, is designed to ease the process of applying for relief loans.
Check out our recent webinar as we review the new CARES Act. The new law will deliver over $2 trillion in economic stimulus aimed at providing relief for individuals and businesses most seriously harmed by this pandemic.