Covid19

Kimberly Tiefenthaler, CBA | Regional Director
America's SBDC – North Central Iowa
217 S. 25th St., Ste. C-12 | Fort Dodge, IA 50501
P: 515-576-6242
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Covid-19: Iowa Business Recovery Assistance:

 

CARES ACT
What You Need To Know

Small Business Paycheck Protection Program (New Program)

Who qualifies: Small businesses (500 or fewer employees, but up to 1,500 depending on the sector), 501(c)(3) non-profits (500 or fewer employees), sole proprietors, the self-employed and independent contractors.

How much is available? Initially loaned through the SBA 7(a) program, but with 100% government guarantee, for monthly payroll costs for 2 1/2 months, not to exceed $10 million. Payroll costs exclude compensation paid to individuals, including the self-employed, above $100,000 a year. The borrower shall have a portion of the loan forgiven in the amount equal to their payroll costs, interest payments on mortgages, rent payments and utility payments between Feb. 15 and June 30, 2020. Loan forgiveness will be reduced if the borrower reduces employment by a ratio similar to their reduction in employment or if borrower reduces salaries and wages by more than 25%.

Economic Injury Disaster Loan Changes

  • The following changes have been made to this existing program, administered by the SBA.
  • Loans can be made based solely on credit scores.
  • Loans are now made available to all nonprofits, including 501(c)(6) organizations.
  • Loans below $200,000 can be approved without a personal guarantee.
  • Borrowers can receive $10,000 cash advances that are forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses.

APPLY HERE

 

Unemployment Programs

The CARES Act extends unemployment insurance by 13 weeks and includes a four-month enhancement of benefits, all covered by the federal government. Individuals must provide certification that he or she are not eligible for regular unemployment insurance, but is unemployed or underemployed due to coronavirus. Additionally, upon agreement between a state, an additional $600 per worker per week of unemployment compensation is available through July 31, 2020.

APPLY HERE

More Information

The CARES Act includes a number of other provisions that are summarized by the U.S. Chamber of Commerce. You can find that information here.

  • CARES Act Small Business Assistance - The CARES Act establishes the Paycheck Protection Program, a $350 billion loan program to help small & mid-sized businesses with cash flow during the COVID-19 crisis. If the business maintains their payroll for 8 weeks, the portion of the loan used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
  • The Small Business Owners Guide to the CARES Act - The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now.
  • Summary of Bipartisan Agreement on CARES Act - The U.S. Chamber of Commerce will revise this document as it continues to review the bill. Summary as of 9:00 AM Thursday, March 26.
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