Last week, Congress passed, and the President signed, the CARES Act, a $2.2 trillion emergency relief bill to help you and your families stay safe and secure during the COVID-19 pandemic. Through this bill, an estimated $18 billion will become available to the over 450,000 small businesses in Florida that employee over 8.3 million workers. I want to share some resources that small businesses can access.
To speak with me directly, tune in to my tele-town hall on April 1 at 6PM ET at (855) 920-0556.
Paycheck Protection Program (PPP) Loans
Small businesses with fewer than 500 employees can apply for relief through the Paycheck Protection Program if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. The program provides cash-flow assistance through 100-percent federally guaranteed loans to employers who maintain their payroll during this emergency.
Loan amounts are 2.5 times monthly payroll expense for full-time employees up to $10 million and can be forgiven if the organization keeps all employees on payroll. The PPP provides forgiveness of up to eight weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral, with maximum deferrals of up to a year. Sole proprietors are eligible as well.
You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool. Applications begin during the first two weeks in April and must be submitted by June 30, 2020.
Industry Stabilization Fund
Mid-sized businesses with between 500 and 10,000 employees are eligible for loans through the new Industry Stabilization Fund. Although there is no outright loan forgiveness provision in the program, these loans have a maximum interest rate of two percent and do not accrue interest or require payments for the first six months. Businesses using these loans must commit to retaining at least 90 percent of their staff with full compensation.
Economic Injury Disaster Loans
Businesses of any size can apply for Economic Injury Disaster Loans through the Small Business Administration of up to $2 million at an interest rate of 2.75 percent.
If you need assistance throughout this crisis, do not hesitate to reach out to my district office at (305) 668-2285. We are updating our website daily with resources for you during this challenging time: shalala.house.gov.