As a part of the new legislation, the Small Business Administration (SBA) has created a nearly $350 billion loan program called the Paycheck Protection Program. This program is available to businesses with 500 or fewer employees to help with payroll, rent, utilities, healthcare costs and more. The SBA has also expanded a number of their existing programs, including the Economic Injury Disaster Loan program.
The federal government is currently finalizing the details and protocols about how and when different programs and relief will be implemented, and how Bank of America as a financial institution will help facilitate the execution of these programs.
If you believe that you will qualify for relief from the CARES Act:
Although details are still being finalized, some documentation may be required when applying for a program when it becomes available.
Based on the legislation, it may be helpful for interested business owners to gather the following information about their business:
- 2019 Payroll — including the last 12 months of payroll
- 2019 Employees — 1099’s for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099’s for services)
- Healthcare costs — all health insurance premiums paid by the business owner under a group health plan.
- Retirement — your company retirement plan funding paid for by the company.
If you would like to download an example of Payroll Protection Program application, here is a sample.
Apply for the COVID-19 Economic Injury Disaster Loan.
