This post is relevant for ALL business owners who have been impacted by COVID-19. The CARES Act includes a special loan program, Paycheck Protection Program (PPP), to help facilitate short-term cash flow needs.
Below is a high level summary of PPP. Attached is a more detailed guide and checklist put together by U.S. Chamber of Commerce.
1.) You can borrow up to 2.5x your average monthly payroll expenses, including employer paid benefits (i.e. paid leave, retirement benefits, health benefits)
2.) The loan are eligible to be forgiven, in full or in part, if, within the 8 week period from the start of the loan, you retain 100% of your employees and you used the loan for wages, interest on mortgage, rent and utilities.
There are other loan programs available, but PPP is the only one in which the loan can be 100% forgiven.
I encourage you to contact your bank immediately to explore various loan options available. Please stay tuned for additional updates and stay healthy!