As IIUSA members look to navigate the complexities of the bipartisan $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act we wanted to provide some additional resources from our accounting team at Chesapeake Financial Corporation.
The stimulus aid package was signed into law on March 27, 2020, and is meant to keep businesses and individuals afloat during an unprecedented freeze on the majority of American life. Specifically, the PPP provision provides relief for small businesses; including emergency grants and a forgivable loan programs.
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Some commonly asked questions:
Is my business eligible?
Your business is eligible if it is a:
- A small business with fewer
than 500 employees; - A 501(c)(3);
- An individual who operates as a sole proprietor
or contractor. - A 501(c)(19) Veterans Organization
When and where can I apply?
You are encouraged to contact your local bank today to see if they are an approved lender or you can contact your Small Business Development Center.
What documents do I need to provide?
- This will be a ‘good faith certification’ process that requires you attest that:
- The uncertainty of current economic conditions makes the loan request necessary;
- The borrower will use the loan proceeds to retain workers and maintain payroll or make rent and utility payments;
- From Feb. 15, 2020 to Dec. 31, 2020, the borrower has not applied for or received a loan duplicative of the purpose and amounts applied for;
How much can I borrow?
You can borrow up to 2.5 x your average monthly payroll costs incurred during the prior year-todate, not to exceed 10million3.
Is this loan forgiven?
This loan is eligible for forgiveness if the borrower spends the funds on:
- Payroll;
- Rent;
- Utilities;
- Interest on mortgages
