COVID-19 Disaster Relief Programs

There are several programs available:

1. Payroll Protection Program (PPP) Forgivable SBA loans (7a) – 8 weeks of payroll cost times 2.5 is maximum loan available – forgivable if funds spent on payroll, rent, interest on mortgage, health and pension benefits – 1% interest, no payments for 6 months, 2-year term*

2. State guaranteed – 7 year loan – 95% guaranteed – underwrite normal – 7 days to funding – 5.25% plus fee 2.5% on guaranteed amount – can do both 7a and State sponsored

3. FEMA sponsored – 30 year – apply direct – 5-8 week turnaround – 3.75% – can do both 7a and FEMA so long as different purposes

*  can also apply for Economic Injury Disaster Loan (EIDL) – up to 10k grant is available. Any PPP forgiveness will be reduced by amount of the grant

4. Payroll tax deferment – FICA tax can be deferred for up to 6 months – DISQUALIFIES FOR PPP.

5. Tax Credits under Paid Sick Leave and Family Leave Act 

• Up to 15k available in tax credits for self-employed individuals
• Take 10 days of paid sick leave
• Take 50 days of Family leave
• Applies to most everyone who needs to care for one self, a family member or a dependent  who is no longer able to attend school

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