Businesses finding themselves impacted by the COVID-19 pandemic may qualify for a portion of the $349 billion allocated for loans by the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act loans are guaranteed by the Small Business Administration (SBA) to qualified small businesses. Most importantly, according to the SBA, lenders may begin processing loans on April 3, 2020.
The CARES Act increased the types and number of businesses that are eligible for an SBA Loan. These loans are classified as a Paycheck Protection Program (PPP) Loan.
Information that will be requested by your SBA lender include:
- Historical payroll reports,
- Tax forms,
- Retirement and health benefit payments, and
- Other financial and business data.
Qualifications to Apply
Small businesses with less than 500 employees who were operating on February 15, 2020 will likely qualify. The amount of the loan available is up to 2.5 times the average of the business’s monthly payroll costs or $10,000,000 whichever is lower. Businesses receiving a PPP Loan may, in some circumstances, qualify for full tax-free loan forgiveness.
We appreciate our clients and are working diligently to keep them up to date with accurate information in this challenging time. Stay safe and please contact your Tidwell Group representative directly with any questions or concerns.
For questions, please contact one of our tax professionals today.