Monthly news & updates
June 2020
Paycheck Protection Program Sunsets June 30; Apply by June 24
The Paycheck Protection Program is the coveted program of the CARES Act to provide businesses with resources to cover payroll so they can open their businesses and maintain their employees following the Governor's emergency stay-home order.

Under the CARES Act, and the newly approved HR 7010, Paycheck Protection Flexibility Act, which provides businesses with greater flexibility and more time to maximize forgiveness of loans received under the PPP, the following are offered for new and existing participants in the PPP program:

  • Covered period for paycheck protection is 24 weeks
  • Term of the loan – 5 years
  • 60% of the loan must cover payroll related costs; 40 percent of the loan for other eligible expenses.

As noted by SBA Administrator Jovita Carranza, "SBA wants to ensure that entities in underserved and rural markets, including veterans and members of the military community, small business concerns owned and controlled by socially and economically disadvantaged individuals, women, and businesses in operation for less than two years benefit from PPP."

AmPac is absolutely committed to supporting the small businesses in our community. We specialize in helping sole proprietors and those who have PPP loan requests under $50,000. Please do not hesitate to contact the AmPac office at 909-915-1706 or visit the website at so that you can be served before the PPP loan program sunsets!
AmPac Borrower Creating Success
Feeding the Dream and the Community

Resilient Taqueria Owner Secures Loan to Grow Business During Pandemic

Entrepreneurs have seen their business dreams crushed and many have closed their business doors permanently due to COVID-19. A report by Stanford Institute for Economic Policy Research indicates the number of active business owners in the United States plummeted by 3.3 million or 22 percent from February to April 2020.

Despite the distressing numbers, we have also seen the resilience and innovation of the entrepreneur. Some businesses are surviving and working toward thriving during this pandemic.

Jose Duenas, owner of El Atacor Restaurant in Los Angeles, is a prime example. Prior to COVID-19 and the mandatory stay-at-home order, El Atacor was busy with seven employees and customers looking for homestyle Mexican food. Like many restaurants, the lockdown drastically impacted business, with revenues coming from take-out orders only.

Once Los Angeles County allowed restaurants to reopen, Duenas was able to obtain a Paycheck Protection Program (PPP) loan and not only keep his seven employees, but add two new employees so they could provide food service 24 hours to serve the frontline workers that have to work night shifts.

“Prior to the PPP approval I was extremely fearful that I would lose my business because I did not have the funds to bring back my employees,” said Duenas. “By receiving this loan, my confidence was instantly regained and I became hopeful again.”
SBA Corner
SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

Washington—The U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form
CARES Act Provides Debt Relief for Businesses Obtaining SBA Loan
The Federal CARES Act provides that small businesses that obtain a new SBA loan, either SBA 7a, 504 or micro-loan, will receive six months of debt forgiveness if the loan is funded by September 27, 2020.  As such, the government will pay both principal and interest payments for the loan for six months, on behalf of the small business, following loan closing and funding.  

The SBA 504 loan may be used to finance real estate, equipment or tenant improvements. The SBA 504 debt refinance program may be used to refinance conventional, hard money or seller carry loans for real estate or equipment, and a business may obtain cash out for up to 20% of the appraised value of the real estate for general business working capital for such expenses as inventory, payroll, utilities, other expenses that will be paid over 18 months following loan approval. The SBA Micro Loan provides loans up to $50,000 for start-up, early start businesses and existing businesses for general working capital. And finally, the SBA 7a programs provides loans for businesses for general working capital, as well as fixed assets financing.

 "SBA 504 loan rates are an a historic low," said AmPac President, Hilda Kennedy. "Though this is a tough time for some businesses, this is an opportunity for businesses to take advantage of long term recovery strategies through SBA 504 Debt Refinance or to take advantage of gaining greater market share with the support of the CARES Act."
COVID-19 Federal Tax Relief for Small Businesses
The federal government has introduced several forms of tax relief for small businesses in the 2020 calendar year. Most of these temporary changes stem from the Families First Coronavirus Response Act (FFCRA) and the Coronavirus, Aid, Relief and Economic Security Act (CARES Act), which jointly serve to help employers and employees survive the ongoing COVID-19 economic crisis.

These changes include a payroll tax deferral, three new business tax credits, and new federal tax filing and payment deadlines—options covered in detail below.

Paid Leave Tax Credits (the FFCRA)
As most employers already know, the  FFCRA  requires most small and midsize employers to provide limited paid leave for employees who can’t work due to the COVID-19 pandemic. Less well-known, perhaps, is that the Act also includes dollar-for-dollar tax credits available the businesses required to comply.
Upcoming Events

June 18
Webinar: Loans for Your Small Business
10:00 a.m.-11:30 a.m.

June 19
Small Business COVID-19 Webinar
Hosted by Congresswoman Norma Torres
11:00 a.m.-12:00 p.m.

July 7
CREW-IE: Virtual Social Hour
5:00 p.m.-7:00 p.m.
Zoom Meeting