Did you originally apply for the PPP or Disaster Relief loan that was part of the original CARES Act? Did you know that congressional leaders and the Trump Administration are close to closing on an additional $500 Billion worth of stimulus for Small Business, Hospitals and additional Testing?
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As I mentioned in the video, congressional lawmakers and the trump administration are closing in on a $500 billion package (second stimulus update) that would extend funding for small business, provide additional funding for hospitals and expand funding for covid-19 testing.
It’s broken down this way:
$300 Billion towards the PPP
$50 Billion towards the Disaster Relief Loans
$75 Billion towards Hospitals
$25 Billion towards additional coronavirus testing
The original CARES Act package details are below:
How were the original PPP and Disaster Loan structured?
SBA PAYCHECK PROTECTION PROGRAM (PPP) • Available on first-come, first-served basis to Small Businesses and Sole Proprietorships beginning April 3, 2020. • Independent Contractors and the Self-Employed must wait to apply until April 10, 2020. • All $349 Billion is expected to be taken FAST, within days. • Loan Amount is based upon Payroll Costs x 2.5 months. • Cash can be received as soon as 24 hours after the application is made. • No Collateral or Personal Guarantees are required. • Loan can be forgiven (completely or partially) if used towards Payroll Costs, Rent, Utilities and Mortgage Interest over the following 8 weeks. • Payroll costs must account for at least 75% of the forgiven amount. • Amount forgiven is a non-taxable cancelled indebtedness. • Loan interest rate is 1.0% with a 2-year term (no interest is due if forgiven in 60-days). • Payments are deferred for 6-months. • No fees to take out the loan.
SBA ECONOMIC INJURY DISASTER LOAN (EIDL) • Get a quick advance (grant) of up to $10,000 to cover immediate payroll, mortgage, rent and other specified expenses. • Can get a loan for up to $2 Million to use on payroll and other defined operating expenses.
What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a law meant to address the economic fallout of the 2020 coronavirus pandemic in the United States. It was introduced in the United States Senate by Majority Leader Mitch McConnell.
Who can benefit from the CARES Act?
Anyone that has been affected by covid-19 could benefit from the stimulus package including independent contractors, self-employed individuals and furloughed workers.
Do you have additional questions about the Cares Act, Stimulus, Forbearance or anything real estate related? If so, please comment below or contact me directly.
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