When is the coronavirus pandemic going to end? No one knows for certain. Meanwhile, each of us has the job of staying healthy — not only physically and emotionally, but financially as well. Unless you’re in the business of selling groceries, medicine or other essentials, most business owners are currently experiencing maximum financial uncertainty, and in many cases financial straits. With more than two-thirds of the country under stay-at-home orders, business owners have had to cut hours if not close completely. The lost revenue, for big and small businesses, is unprecedented, as is the number of people filing for unemployment.  

Thankfully, not all hope is lost. The purpose of today’s communication is to make sure you are informed of two key economic relief and stimulus packages directly benefiting small business owners. For your benefit, we have summarized the Paycheck Protection Program and the Economic Injury Disaster Loan Program below:

Paycheck Protection Program (PPP)

The $2 trillion coronavirus stimulus package includes $349 billion in small business loans and $500 billion in loans for distressed corporations.

These small business loans — known as the Paycheck Protection Program — can be up to two times payroll costs plus an additional 25%, up to $10 million dollars, and are guaranteed at 100% by the Small Business Administration (SBA). The program was created to help small businesses affected by coronavirus to maintain their workforce. So up to eight weeks of payroll, mortgage interest, rent and utilities covered by a PPP loan will be forgiven, as long as the full-time headcount and payroll stay the same as they were on average between February 15, 2019 and June 30,2019 (or January 1, 2020 to February 15, 2020 if you launched your business just this year). Businesses that have already let employees go or cut salaries have until June 30, 2020 to rehire or reinstate salaries.

The part of the loan that does not become a grant (you’ll have to request forgiveness once you can certify that you used the money to cover payroll, etc.) will be due in two years, though payments are deferred for six months. The interest rate is fixed at 0.50%. (If you don’t maintain headcount and payroll at pre-pandemic levels, the amount that is forgiven will be reduced.)

To be eligible, a business generally must have 500 or fewer employees. Sole proprietors and independent contractors may also apply. You can submit an application for one of these loans through a local lender. The only other paperwork you need is payroll documentation. Lenders may begin processing applications from small business owners and sole proprietors Friday, April 3, 2020, and from independent contractors and self-employed individuals the following week, April 10, 2020. The deadline is June 30, 2020, but you should apply quickly, since Congress has capped the program at $349 billion. For more details, including a list of participating lenders, once it’s available, go to the SBA website. The Treasury Department also has a helpful fact sheet.

Economic Injury Disaster Loans (EIDLs)

President Trump has also signed legislation to support low-interest Economic Injury Disaster Loans (EIDL) for any business impacted by coronavirus. These loans are administered by the SBA and are available for up to $2 million in states where an economic disaster has been declared. The interest rate is 3.75% for businesses and 2.75% for nonprofits. The loan term varies by applicant but could be up to 30 years. Interested small business owners can apply here

Additionally, under this program, small business owners may apply for an emergency cash advance for up to $10,000. If the money is used to cover such expenses as payroll, the advance will become a grant. Application procedures are the same as for EIDLs.

Other Resources

Please do not hesitate to reach out to us if you have specific questions or concerns about the stimulus package for small business or any other aspect of the government stimulus. For additional support on this topic, we have included several links to supporting tools and resources below:

In addition to the resources regarding PPP and EIDL provided above, I have included links to all our prior communications regarding the Coronavirus.


We are here to support you through this very devastating time. Please do not hesitate to reach out to me or any member of my team with questions or just for reassurance.

Be Well,
Rick W. Campbell
Financial Independence
931 Jefferson Blvd
Suite 2005
Warwick, RI 02886

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