Dear Client or Friend,
Sorry for all of the recent emails... but this couldn't wait! The CARES Act was signed on Friday... and it contained a crazy SBA loan called the Paycheck Protection Program. Why is it crazy? It has a massive loan forgiveness component where if you meet certain staffing requirements, eight weeks-worth of payroll, loan interest, rent and utilities may be erased from your SBA loan. Gone! See ya! Healthy balance sheet is back.
We advise all readers of this email to do the following two things immediately:
- Read the attached "CoronaVirus Emergency Loans Small Business Guide and Checklist" that was prepared by the U.S. Chamber of Commerce. It provides a very thorough and concise overview of the program.
- Begin preparing for your application by calculating your monthly payroll, rent/mortgage, and utilities expenses, and gather supporting documentation of these expenses.
Banks are still waiting for guidance from the regulatory agencies as to how these loans are to be administered and which banks will be able to provide the loan. It may take up to two weeks before they can begin accepting applications. We recommend making contact with your banking relationships now. Make them aware that you plan to apply and ask for updates as they learn more.
If you have questions specific to the CARES act or the impact of the Coronavirus on your business or industry more generally, give us a call.
The Wojcicki Team