April 1, 2020
Federally sponsored economic relief programs for small businesses suffering from COVID-19 pandemic
SBA Paycheck Protection Program (PPP)
- Eligible borrower is any small business with fewer than 500 employees - This includes corporations, LLCs, partnerships, sole proprietors, independent contractors and self-employed individuals.
- No personal guarantee or collateral is required.
- Borrower must certify that the uncertainty of current economic conditions make the loan request necessary to support ongoing operations AND the loan proceeds will be used to retain workers and maintain payroll or make mortgage, lease, and utility payments.
- Maximum loan amount = 2.5x average monthly payroll costs incurred during the year prior to loan date.
- Borrower is eligible for loan forgiveness equal to the amount spent on the following items during the 8-week period beginning on the loan date: payroll (including benefits), interest on loans, rent and utilities.
- Payments are deferred for 6 months.
- 0.50% fixed interest rate.
- Loan is due in 2 years.
- Must apply for loan from an SBA lender.
- Loan applications accepted beginning April 3, 2020.
- US Chamber of Commerce - Coronavirus Emergency Loans - Small Business Guide and Checklist - Provides lots of useful information including what is included and excluded from 'payroll costs'.
- US Department of the Treasury - Paycheck Protection Plan Overview - The PPP loan application can be found here.
- Program provides working capital loans of up to $2 million to small businesses suffering a temporary loss of reveune due to the COVID-19 pandemic.
- Eligible borrower is any small business with fewer than 500 employees that has been in operation since January 31, 2020. - This includes corporations, LLCs, partnerships, sole proprietors, independent contractors and self-employed individuals.
- Loan must be applied for directly with the SBA (online submission is recommended).
- 3.75% fixed interest rate
- Payments can be deferred for up to 12 months.
- Any borrower is eligible for an emergency advance of up to $10,000 within 3 days of applying for an EIDL. This advance does NOT need to be repaid. To access the advance, the borrower must first request the EIDL and then request the advance.
- Maximum loan term is 30 years.
- There are no loan prepayment penalties.
Click on this link to access the Disaster Loan Application section of the SBA's website. Here you can find more information regarding the EIDL program and submit your online application.
- Unemployment benefits are now available to 1099-MISC independent contractors and the self-employed.
- However, as of today the MA Department of Unemployment Assistance (DUA) has yet to update their systems to allow for self-employed individuals to file an unemployment claim. The MA DUA notice states that they are awaiting federal guidance regarding the CARES Act unemployment application and eligibility requirements. We sugget that if you are self-employed and have experienced an elimination or reduction in income due to COVID-19 that you check the MA DUA website on a daily basis. You can click on this link to access the MA DUA resources for the self-employed.
- CARES Act to supplement weekly unemployment benefits by $600.
- CARES Act to provide 13 additional weeks of unemployment benefits once state unemployment benefits are exhausted.
“Staff is incredibly competent, fun, warm…fantastic team”
“Very happy with their service…exceptional…”
“On the wealth management side, they counsel me and are intellectually driven, conservative, and disciplined”
“They are very loyal to their clients”