Update on Economic Stimulus Bill: Benefits for Small Businesses and Employees
The recently passed economic stimulus bill may be the most important and is certainly the largest tax and economic stimulus package EVER offered to America’s small business. This bill is designed by Congress to help businesses cover payroll and other costs over the next 8 weeks.
Some quick points about this bill:
- $350 Billion stimulus
- If applied correctly, this can be a Grant, not just a loan.
- It will be available through almost all banks by next Friday
- Designed to cover 8 weeks of pay
- No personal guarantees/ no recourse
- The application is based on a good faith statement by the business owner only
- Maximum loan amount is based on 2.5 times your average monthly payroll
- Can be used for either payroll, mortgage payments, utilities, and/ or rent
- Payroll costs include compensation, medical/ sick leave, state and local tax, and retirement benefits
- To be forgiven, need to keep your employees employed (AND FORGIVENESS WILL BE TAX FREE)!!!
- Even if a loan, the max interest rate is 4% and payable over 10 years.
Please let us know if we can help you in any way as we all work together to get through this challenge!
Stay safe and keep well,
Bob Cohen, CPA, CFP, MBA