More information on the FFCRA and CARES Act loans.
As mentioned, the DOL regulations on the FFCRA came out yesterday, details to come. In the interim, yesterday was the deadline for covered employers to provide notice to employees of their rights under the law. DOL guidance on notice is here: https://www.dol.gov/agencies/whd/pandemic/ffcra-poster-questions
The SBA application for Economic Injury Disaster Loans is here: https://covid19relief.sba.gov/#/
The SBA has also provided guidance on the Paycheck Protection Program (PPP). The PPP will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020, under the following terms and conditions:
- Eligible businesses: All small businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
- All loans under this program will have the following identical features:
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SB
More information about PPP is here:
Guidance from the U.S. Treasury and the PPP Application are here:
Employers wishing to obtain PPP loans should contact their lenders (or any SBA Participating Lender) to get the application process started.
More on DOL regulations soon.