-Paycheck Protection Program (PPP)
- Loan amounts can be up to 250% of your average monthly payroll.
- No collateral or personal guaranty is required.
- Proceeds can be used for payroll, certain health benefits, interest on mortgage or rent
payments, utilities, and other specified expenses.
- Loans have a two-year term, that can be extended, with a maximum interest rate of 4%
(currently 1%, As of April 3, 2020)
- A portion or all of loan may be forgiven by the Small Business Administration and,
therefore, would not have to be repaid if used for “forgivable expenses.”
- APPLY THROUGH YOUR BANK (list of approved banks here)
-Economic Injury Disaster Loan (EIDL)
- Most small businesses are eligible to apply.
- Credit history and ability to repay will be considered.
- Must show economic injury due to coronavirus (COVID-19), not other factors.
- These loans do not go through a lender; they come directly from SBA Disaster Assistance (http://disasterloan.sba.gov).
- There is no cost to apply.
- Eligible entities can borrow up to $2 million at interest rates of 3.75% for small businesses and 2.75% nonprofits; the rates are fixed for the full term of the loan.
- Terms are up to 30 years, no prepayment penalty.
- APPLY HERE
-Employer Retention Credit
-Employer Payroll Tax Deferral
-Maryland Small Business COVID-19 Emergency Relief Grant Fund
- up to $10,000,
- Must have fewer than 50 Employees
- Must have gross revenue of less than $5M
-Montgomery County, Maryland: Public
Health Emergency Grant (PHEG)
- Priority for those with a 50% demonstrated revenue loss through the end of
March. Does not apply to anticipatory future loss
- Not required to
apply for State or Federal aid to be eligible
THINGS TO DO
- Renegotiate any outstanding debt.
- Apply for the appropriate program
- Make a 13 week cash flow projection for 2-3 different
- Time is of the essence as a large portion of available funds are availabe on a "first come first served" basis.
- For PPP, look at applying with 2-3 banks
- Apply for EIDL to get $10,000 emergency grant.
- Employers cannot use proceeds from different programs for the same expense (no double dipping)
- Payroll expense verification documents to include:
- 2019 IRS Quarterly Form 940 and 941 or 944 payroll tax reports
- Payroll summary report for 2019 and payroll summary for period on or around February 15, 2020 with the
- Gross wages for each employee, including officer(s) if paid W-2 wages
- Paid time off for each employee
- Vacation pay for each employee
- Family medical leave pay for each employee
- State and local taxes assessed on an employee’s compensation
- If a payroll summary report is not available, employee pay stubs as of February 15, 2020 (or corresponding
- Documentation showing total of all health insurance premiums paid by the company/owner(s) under a group health
- Include all employees and the company owners
- Documentation of all retirement plan funding that was paid by the company/owner(s) – do not include funding
that came from employees out of their paycheck deferrals)
- Include all employees and the company's owners
- Include 401(k) plans, Simple IRAs, SEP IRAs
- Self-employed individuals, independent contractors, and sole proprietorships: payroll tax filings for 2019
and year-to-date 2020, 1099-Miscellaneous forms and 2019 and year-to-date 2020 income and tax expense from the sole proprietorship
- Detailed list with corresponding salaries of all employees outside the United States
- Most recent mortgage statement or rent statement (lease)*
- Most recent utility bills (electric, gas, telephone, internet, water)*
*Required for debt forgiveness to be provided prior to any forgiveness.