COVID-19 will financially impact every small business. Now is the time to prepare and secure funding. We are here to help.
While your business may not be feeling the financial pain now, you don’t want to wait until the last minute to find funding. Banks are accepting applications now for loans via the Paycheck Protection Program. We want to help you apply for the Paycheck Protection Program so we’ve outlined the information we have below.
365BOOKSPRO is here to help employers across DC, Maryland, and Virginia (DMV) with their financial strategy navigating COVID-19 challenges. Please don’t hesitate to schedule time with us so we can best advise you on what are the best financial actions we can take to assist your business. Below you’ll find new nation-wide resources as well as a Virginia-specific summary of the available funding, tax relief, and more. To help you stay informed and keep track of the numerous federal, state, and local government and non-governmental resources, we’ve consolidated this PDF relevant to businesses across the DMV. Let us know how else we can be of support.
Paycheck Protection Program Overview
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Who Can Apply to the Paycheck Protection Program
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. Each store location could be eligible.
How to Apply for the Paycheck Protection Program
Apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
Lenders may begin processing loan applications as soon as April 3, 2020. 365BOOKSPRO highly encourages to apply for the Paycheck Protection Program now; banks across the DMV region are accepting applications now!
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of .5%.
To begin preparing your application, download a sample form to see the information that will be requested.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for disaster assistance.
Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
For information on additional Lending options, please click here.
SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please click here.
365BOOKSPRO COVID-19 Resources & Updates Available
We understand the whirlwind of resources and updates are enough to make heads spin. To help you stay informed and keep track of the numerous federal, state, and local government financial resources, we have curated key links and information that we would like to share with you. We’ve consolidated this PDF of resources where you’ll find some additional highlights tracking actions the government is taking to support small businesses across DC, Maryland, and Virginia. Again, it is best to schedule time with us versus trying to call or email. Many businesses are in need right now and we are doing everything we can to assist as quickly as possible.