SBA and US Treasury PPP and EIDL Loan Programs
SMALL BUSINESS PAYCHECK PROTECTION PROGRAM (PPP)The Paycheck Protection Program established by the CARES Act, is implemented by the Small Business Administration with support from the Department of the Treasury. This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $659 billion toward job retention and certain other expenses.Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards. ECONOMIC INJURY DISASTER LOANS (EIDL)In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid. If a business received an Economic Injury Disaster Loan advance in addition to a Paycheck Protection Program (PPP) loan, the amount of the Economic Injury Disaster Loan advance will be deducted from the PPP loan forgiveness amount by SBA. The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic. This program is for any small business with fewer than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.

The CARES Act Provides Assistance to Small Businesses

  • Essential Types of Business InsurancE
  • TYPE OF BUSINESS INSURANCE COST WHAT IT COVERS:
  • Workers compensation (required) $0.75- $3 month/ $100 of payroll Claims resulting from work-related injuries
  • Unemployment insurance (required) Varies by state (0.6% fed tax rate Guarantees portion of employee’s wages after job loss
  • Disability insurance (required) 0.25% to 0.5% of payroll Guarantees a portion of employee’s wages after illness or injury
  • General liability insurance $400 to $600 per year Certain losses that business causes to another company, client, or vendor
  • Commercial property insurance $1,000 to $2,000 per year Theft, fire, vandalism, and some weather-related property damage
  • Professional liability insurance $900 to $1,800 per year Financial losses arising from your business’s negligence or malpractice
  • Product liability insurance $0.25 per $100 of product sales Design flaws, manufacturing flaws, or insufficient product instructions
  • Employment practices liability ins $800 to $3,000 per year Wrongful termination or discrimination claims
  • Key person insurance Less than $1,000 per year Replaces lost income from an owner’s or key executive’s death or disability
  • Workers Compensation Insurance (Required) One of the three types of business insurance that, if you have employees, may be required by law is workers’ compensation. States require most employers to carry workers’ compensation insurance in case employees are hurt on the job. This is definitely a requirement that you don’t want to take lightly. Failure to purchase the required amount of coverage can result in fines and, rarely, even in criminal penalties.
  • If an employee experiences a work-related injury, workers comp will cover their medical expenses and pay them with a portion of their wages while they recover. For example, workers comp would cover an employee’s back pain that stems from poor ergonomic desk setup. If an employee sues your company for work-related injuries, workers’ compensation insurance usually covers the cost of defending the lawsuit
Note:
The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. exceptnon-cash benefits, including all green bulleted payments: View PPP FAQ!s >>>
  • employer contributions to defined-benefit o defined-contribution retirement plans;
  • payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums; and
  • payment of state and local taxes assessed on compensation of employees.
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