UPDATED WITH 4/3/20 FINAL FORMS:
- The SBA 31-page Interim Final Rules Document with good FAQ and Examples can be FOUND HERE
- The principal application that your bank will require can be FOUND HERE
- A 13-page Express Bridge Loan Pilot Program Guide that your bank will follow can be FOUND HERE
- The SBA Borrower Information Form your banker may/will require can be FOUND HERE
- An informative 4/3/20 article from Fortune Magazine can be FOUND HERE
Apply immediately for Federal programs if you are eligible:
We've had a number of clients ask questions about not just insurance but small business loans, grants, payroll protection, and the family first act. We're trying to keep informed to help direct those questions. We can't offer legal of financial advice, but we've been trying to help our clients wade through the muddy waters of the information that is out there and give advice about how this effects their insurance and how they can prevent or mitigate new risks that could arise. (And advice is always free).
Here is a brief summary of some helpful information regarding the Paycheck Protection Program as well as an attachment with the application that will be received by local banks starting April 3rd.
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Businesses with fewer than 500 employees are likely eligible for the Paycheck Protection Program and should apply through their local banks:
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Loans are forgivable
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No collateral or personal guarantees are required
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The maximum interest rate is 4% and payments are deferred up to six to 12 months
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Loans can be up to 2.5x your average monthly payroll costs, not to exceed $10 million
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Funds can be used for payroll expenses, rent, utilities and interest on existing debt
An additional measure to help small businesses is the expansion of the Economic Injury Disaster Loans (EIDLs) offered through the Small Business Administration (SBA). These loans can go up to $2 million and with a 30-year term at 3.75% interest but are not forgivable. Companies can apply for both the Paycheck Protection Loan and the EIDLs as long as the funds do not cover the same expenses.
Economic Injury Disaster Loans can be applied for here: https://covid19relief.sba.gov/#/
Some of the critical forms needed to apply for these programs are located here - here - and here.
If you have any questions, please feel free to call Tracy Mitchell (412) 465-0264 and we can direct you to helpful resources if we are not able to answer a specific question.
Hope you are well.
Tracy Mitchell - CPCU, ARM, CWCA