Additional Information on CARES Act Benefits and COVID-19 Relief.

For the Small Business Association's loan/grant web portal:

Coronavirus (COVID19): Small Business Guidance

& Loan Resources.

For more information on MFRE Federal mortgage forbearance:

CARES Act Provides Mortgage Forbearance.

For immediate local updates:

211.org

For more helpful information on the PPP/EIDL Programs:

Getting Cash For Your Small Business Through The CARES Act.

For more information on personal federal mortgage forbearance:

The Federal CARES Act As It Relates To Mortgage Servicing.

For more information on Federal Student Loan programs:

 

What The CARES Act Means For Repayment Of Federal Student Loans. 

Review Your Quiz Results:
 

Relief Available to Individuals

 
Temporary Relief for Student Loan Borrowers

Because you have federal student loans, your interest rate will automatically become 0% until September 30th, 2020.

You also have the option of discontinuing loan payments until that date, without penalty. To officially suspend payments on your loan, you must contact your federal loan provider. However, if you choose not to do so, the amount will not change, but it will go entirely towards the principal and you will not be penalized for late payments. For the purposes of Credit Reporting Agencies and loan federal forgiveness or rehabilitation programs, months not paid in this period will be treated as if all payments were made. During this period, all involuntary collection related to the loan will be suspended (wage garnishment, reduction of tax refund, etc.)

 
Foreclosure Moratorium & Consumer Right to Request Forbearance

Because you have federally backed mortgage loans are are experiencing financial hardship due, directly or indirectly to COVID-19, you may request forbearance on the loan, regardless of delinquency status by: (a) submitting a request to the your mortgage servicer and (b) affirming that the you are experiencing financial hardship due to COVID-19. No additional documentation will be required beyond your attestation.

The forbearance will be granted for up to 180, and can be extended. No fees, penalties, or interest beyond the scheduled payments will be accrued and it will be treated as if the you had made all payments.

Important: No servicer may try to initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgement or order of sale, or execute a foreclosure-related eviction or foreclosure sale for at least 60 days beginning on March 18, 2020.

 
Penalty-Free 401(k) Withdrawal

Because you have faced financial hardship due to COVID-19, you qualify for penalty-free retirement fund (401(k)) withdrawals of up to $100,000. At any time during the 3-year period beginning on the day after the date on which your withdrawal iIs received, you may then make 1 or more contributions--totaling no more than the amount withdrawn--back into any retirement fund you are a beneficiary of. Before utilizing this option, we highly suggest you consult with a financial advisor or research it further. 

The following eligibility requirements apply:

(i) withdrawal made on or after January 1, 2020 and before December 31, 2020

(ii) individual is (1) diagnosed with COVID-19 by a test approved by the CDC, or (2) spouse or dependent is diagnosed, or (3) experiences adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to the virus, being unable to work due to lack of child care due to the virus, closing or reduced hours of a business owned by the individual due to the virus.

 

Relief Available for Small Businesses

 

Offered to small businesses with fewer than 500 employees, select types of business with fewer than 1,500 employees, 501(c)(3) non-profits with fewer than 500 workers and some 501(C)(19) veteran organization (have to be in operation before February 15, 2020)

  • You won’t be penalized for a reduction in employment or wages during the period from February 15, 2020 to April 26, 2020, if you rehire employees that you previously laid off or restore any decreases in wages or salaries by June 30, 2020.

Self-employed, sole proprietors, freelance and gig economy workers are also eligible to apply (again, you have to be in operation before February 15, 2020). Loans are given up to a maximum of the lesser of $10 million, or 2.5 times the average monthly payroll costs – including wages for employees making under $100,000, as well as expenses for paid sick leave, healthcare and other benefits - during the 1-year period before the date on which the loan was made.

  • The maximum interest rate under this program is 4%

  • The loan term is up to 10 years

  • No personal guarantee or collateral is required for the loan

  • Payments are deferred up to six to 12 months

  • Part of this loan may be forgiven and not counted as income to you, if it’s spent during the first eight weeks on operating expenses.

Loans are forgiven when used for any of these costs:

  • Payroll costs, excluding prorated amounts for individuals with compensation greater than $100,000

  • Rent pursuant to a lease in force before February 15, 2020

  • Electricity, gas, water, transportation, telephone, or internet access expenses for services which began before February 15, 2020

  • Group health insurance premiums and other healthcare costs.

Loan Forgiveness

In order for the amounts to be forgiven, you must maintain the same average number of employees for the first eight-week period beginning on the origination date of the loan as you did from February 15, 2019 - June 30, 2019 or from January 1, 2020 until February 15, 2020.

If you don’t meet this requirement, the amount forgiven is reduced. You incur additional reductions if you cut compensation for employees who make under $100,000 by more than 25%, as compared to the most recent quarter. (The US Chamber of Commerce offers a step-by-step calculation here).

However, if you rehire employees that you previously laid off or restore any decreases in wages or salaries by June 30, 2020, you won’t be penalized for a reduction in employment or wages during the period from February 15, 2020 to April 26, 2020.

You can apply for the Paycheck Protection Loan directly through your local lending institution. You must certify that your company qualifies as a small business (NAICS small business standards are available here).

Paycheck Protection Program

 
Economic Injury Disaster Loans (EIDLS)

EIDLS can be approved by the SBA based solely on an applicant’s credit score (not repayment ability and no tax return is required). A prior bankruptcy will not disqualify you. Additionally, EIDLS smaller than $200,000 can be approved without a personal guarantee.

EIDL Emergency Cash Grant:

  • Borrowers can receive $10,000 in an emergency grant cash advance that can be 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 loss.

  • This program is available to sole proprietors or independent contractors, as well as tribal businesses, cooperatives, and ESOPs with fewer than 500 employees and all non-profits including 501(c)(6)s.

  • Emergency cash is available even if you don't qualify for additional funds. You can apply even if you already have a credit line.

 
Employee Retention Credit

A credit will be given against applicable employment taxes for each calendar quarter, an amount equal to 50% of the qualified wages for the calendar quarter.

Limitations:

  • No more than $10,000 in qualified wages per employee

  • Credit will not exceed the applicable employment taxes

  • Confirm your business's eligibility:

  • Carrying out business in 2020, and

  • In any calendar quarter the business is fully or partially suspended due to orders from government authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19, OR

  • The gross receipts for the calendar quarter (beginning Dec. 31, 2019) are less than 50% of the gross receipts for the same quarter in 2019 and lasting until the quarter in which gross receipts are greater than 80% of the gross receipts for the same quarter in the prior year.

Eligible wages include:

  • If an employer with an average of over 100 full-time employees in 2019, the wages those employees are paid while not providing services due to the COVID-19 downtimes, OR

  • If fewer than 100 employees, any wages paid to these employees during the described downtimes

  • However, an employee’s wage cannot exceed what it would have been in the 30 days immediately prior to the period for working the same amount.

Important: If an employer receives a covered loan from this act they shall not be eligible for credit under this section. However, no penalty will be assessed for misfiling under this section if it was due to reasonable anticipation of the credit.

 
Midsize Business Loan Program

Businesses, including non-profit organizations, with between 500 and 10,000 employees will be eligible for direct loans from banks and other lenders. These loans will have annualized interest rates of no higher than 2% and for at least the first 6 months after the loan is made, no principal or interest will be due.

Businesses will have to make a good-faith certification that:

  • The uncertainty of economic conditions make the loan necessary

  • The funds will be used to retain at least 90% of their workforce, at full compensation and benefits, until September 30, 2020

  • Business will restore no less than 90% of the workforce that existed as of February 1, 2020 and restore all compensation and benefits to the workers no later than 4 months after the termination of the public health emergency as determined by HHS

  • Business is domiciled in the United States with significant operations and employees located within the United States

  • Not a debtor in a bankruptcy proceeding

  • Business is created or organized in the United States or under the laws of the United States and has significant operations in, and a majority of its employees based in the United States

  • Will not pay dividends on common stock or repurchase equity, or parent company’s equity, that’s listed on national securities exchange, except as is required under a contract made before the enactment of this act

  • Will not outsource or offshore jobs for the term of the loan and 2 years after completing repayment

  • Will not abrogate existing collective bargaining agreements for the term and 2 years after

  • Will remain neutral in any union organizing effort for the term of the loan

Employee Compensation Limitation:

No officer or employee of the business whose compensation exceeded $425,000 in 2019 will receive compensation that exceeds that previous compensation or severance pay or other benefits which exceeds 2x the maximum total compensation received in 2019.

Total compensation includes salary, bonuses, awards of stock, and other financial benefits.

Important: These loans will not be reduced through loan forgiveness.