IronGate wanted to reach out to all of our friends and colleagues that are struggling with their small businesses. We’re all trying to navigate this new reality we’re faced with. For small businesses and the self-employed, it can be especially difficult.
The United States government, through the CARES act, has established the Paycheck Protection Program. All of the details can be found through the link below, but here is the overview:
What is the Paycheck Protection Program?
It is a government program to help businesses and individuals in business survive the economic impact of the virus. The goal is to incentivize small businesses to keep their workers employed and to avoid layoffs.
How does the program work?
The SBA (Small Business Administration) is guaranteeing loans that are given out by more than 800 lenders (banks and credit unions) all over the United States. You simply apply at your local bank.
Do I qualify?
As long as your business is under 500 employees. It includes employees that are even part-time, or any other status.
What are the terms?
There is a formula for calculating the amount of money you can receive. Please review the document at the link provided for the details. Essentially, you should be able to receive a loan for approximately two months worth of your payroll, mortgage/rent, and utilities.
What is the interest rate?
The information keeps fluctuating every day, but as of the last report, the interest rate will be 0.5% for 2 years. However, if you use the money outlined in the terms (used for your payroll, mortgage/rent, and utilities), you qualify for complete loan forgiveness. Yes, you heard that right.
How and when do I apply?
Today, Friday April 3rd is the first day you can apply if you’re a small business or sole proprietorship. If you’re self-employed or an independent contractor, application begins on April 10th. You’ll have to check with your local bank or credit union to see if they’re participating in the program.
We hope you find this information helpful. We’re all in this together and we want to help our clients (our friends!), any way we can.
— Your friends at IronGate!
For the most current information, please visit the COVID-19 page of the U.S. Chamber of Commerce.