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GGRNY

The Small Business Owner’s Guide to the CARES Act

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This was a solid read regarding the various options for small business assistance from the U.S. Senate Committee on Small Business and Entrepreneurship.  It answered a lot of questions I keep seeing people ask.  Hope this helps others.  

The Small Business Owner’s Guide to the CARES Act

In addition, I subscribed to Live Oak Bank emails and they have been great about getting specific and changing information out really quickly.  Here's an example of what they sent out yesterday. 

Live Oak Bank Wed, April 1 Email  (link was removed, contents posted by JKL in a post below)

All the best ya'll. Last year's tax season was brutal with all the tax reform changes, and I thought this year would be much, much easier.  HA!  Enter, the Coronavirus & CARES Act. BAM!  I'm a hot mess again.  Be well!

Edited by jklcpa
removed a link
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Thanks, Gail, but I think you have to be a customer to subscribe to those emails, at least, I didn't find a way to subscribe. I could have unsubscribed you, though, so you might want to delete that link!

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4 minutes ago, Abby Normal said:

Thanks, Gail, but I think you have to be a customer to subscribe to those emails, at least, I didn't find a way to subscribe. I could have unsubscribed you, though, so you might want to delete that link!

Thanks for the heads up on the link.  MODERATORS, help!  I can't edit the post anymore.  

I'm not a customer of theirs, but somehow got on the email list anyway.  Hmm, I'm so tired, maybe I was researching in my sleep.  😴

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5 minutes ago, GGRNY said:

Thanks for the heads up on the link.  MODERATORS, help!  I can't edit the post anymore.  

I'm not a customer of theirs, but somehow got on the email list anyway.  Hmm, I'm so tired, maybe I was researching in my sleep.  😴

I don't mind deleting the links, but when I clicked on the first link I was able to view the entire 11-page document.  The second link took me to an email that I've deleted and included the modified contents without links and that removes the ability for anyone to unsubscribe you.  If that isn't sufficient, please let me know.

 

Quote

Yesterday afternoon, (Tuesday, March 31) the U.S. Treasury Department released guidance on the Paycheck Protection Program aimed at helping small businesses in our country. There are several key changes to the Paycheck Protection Program that differ from what was initially released. The banking industry is still waiting on final rulemaking from the SBA to determine the exact requirements to make a loan.
 
We’d like to highlight yesterday’s changes to ensure you fully understand what this loan program entails:

Previously Stated New Guidance

Annual Percentage Rate 4.0%
 
Annual Percentage Rate 0.5%

Term: 10 Years
  Term: 2 Years
 

Deferral Period 6-12 months
  Deferral Period: 6 months
 

Forgiveness: Proceeds used on mortgage, rent, utilities & payroll are forgivable.
  Forgiveness: You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. You will also owe money if you do not maintain your staff and payroll.

Another notable update will affect when you can apply, depending on what type of business you own. 

Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. 

Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

We’re also sharing two helpful documents, described below.
 
The first is solid guidance from the U.S. Senate Committee on Small Business and Entrepreneurship. We encourage you to read through this document to understand all your options and know that while the Paycheck Protection Program may be a solution for some, there are additional loan programs that your businesses could qualify for. 

Second, here is the formal application for the Paycheck Protection Program. We are developing an online application; however, you can reference this document to help you prepare for your application. We’ll notify you when we’ve launched our online application.

This is an incredibly fluid program. Rules have still not formally been completely written, but we will do our best to provide you the information you need on how to best move forward. We care deeply about small businesses, which are the lifeline of this nation. We hope we can continue to be a source of information and guidance as we all navigate these unusual times.

Sincerely,

Live Oak Bank

 

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