The newest CARES Act recently approved by Congress financed financial assistance to own small businesses experience monetary adversity because of brand new COVID-19 pandemic. Two Small business Management (SBA) loan software oriented otherwise expanded by work was regarding form of notice in order to relatives doctors: the economical Burns Emergency Financing (EIDL) additionally the Income Security Program (PPP).
Separate designers don’t amount and should file for their particular PPP loan
The fresh PPP try a short-term program centered within the CARES Operate you to definitely allocated $349 mil to provide businesses that have five hundred or a lot fewer personnel with fund for approximately seven weeks of payroll can cost you (along with professionals), and to shell out interest toward mortgage loans, rent into present accommodations, and you will electric bills. Brand new finance would-be completely forgiven if used for such purposes provided at the least 75% of the amount forgiven was utilized for payroll. Mortgage costs was deferred for six months, there are no pre-percentage penalties, they don’t really want collateral or private promises, there are not any charge charged so you’re able to individuals. The borrowed funds is interested rates of just one% which can be due in two many years.