Small Businesses Coronavirus -Update 04/03/2020
There is just one word for these loan applications CONFUSION!!!
I ask all my clients and business owners out there to be patient and remain calm. Bankers, advisors, in general everyone is learning new details daily. Here is the summary of the new updates I got today.
- Contractors do not qualify for the payroll cost calculation. The government wants those independent contractors to apply for themselves so there is no double dipping.
- Loan is 2.5 times monthly average payroll cost
- Some are using 2019 payroll cost, some are using 12 months from the disaster day
- Alternative calculation available for Seasonal employees
- Seems that the Interest rate will be somewhere between .5 to 1%
- Term will be 2 years for those that do not qualify for the forgiveness
- It looks like you will be able to apply for both EIDL and PPP, just not use the funds for the same expenses
- Lenders cannot charge borrowers for the loan application
- Banks are not making money out of these loans, so most of them are only offering the application to existing clients
- We are working diligently to find a solution for those that need help and cannot get it through their current banker
- Some have started to receive the 10k advance payment
- Application has a space for "lost rents" - May be good news for landlords and Airbnb’s
As always, I emphasize that we are here as a resource for our community. We are getting lost of calls and emails from clients and non-clients for guidance. We want to assure you that we are here for you and we will remain getting informed and updated to assist you.