Don’t allow this time of uncertainty to impact your bottom line
Leverage these programs to sustain and potentially grow your business
At Campolo & Associates we understand that the coronavirus pandemic has hit a little too close to home for many of the businesses and nonprofits we serve. There is a lot of misinformation going around about the recently enacted Coronavirus Aid, Relief and Economic Security Act (the CARES Act).
Elements of the CARES Act that can Help your Business Recover
We do not take it lightly that you’ve trusted us with your taxes, accounting and payroll needs over the years and believe you shouldn’t have to face these uncertain times on your own. We’ve done our own research and spoke with top experts on your behalf to compile the following information about sections of the CARES Act that can help your business recover.
● Paycheck Protection Program »
● Small Business Disaster Relief Loan »
The Paycheck Protection Program (PPP) and the Small Business Disaster Loan are two different ways that the government is coming alongside small businesses and nonprofits to help cover expenses like payroll, real estate, personal property, economic injury, machinery and equipment and inventory.
Is the PPP or Small Business Disaster Loan right for you?
Follow these simple steps to help you make the best decision for your business:
1. Review the information below
The chart gives side by side information on two available programs
2. Consult with an expert to discuss further
You bank or preferred lender is a great expert. If you would like to use our trusted contact please let us know and we can provide contact information
3. Start the application process
Each program requires an application and approval
4. Reach out to Campolo & Associates if you need assistance with reporting
If you are a current client, we can pull reports to assist in the application process. Email us at payroll@campoloassociates.com
*NOTE: This is a high level overview we have gathered as of April 3. The information continues to change as the government is finalizing details. We strongly recommend that you continue to research yourself using irs.gov and sba.gov and consult with a trusted bank before proceeding forward.
| Paycheck Protection Program | Small Business Disaster Loan | |
|---|---|---|
| What is it? | Provides small businesses with funds to pay up to 8 weeks of payroll costs, including benefits, capped at $100,000.* Funds can also be used to pay payroll, interest on mortgages, rent, and utilities. When certified, this loan may be forgiven. *annualized basis for each employee | Gives you an Economic Injury Disaster Loan (EIDL) to use for business expenses. Upon approval, you will receive a $10,000 loan advance. This loan advance may not need to be paid back and therefore turns into a grant. |
| Main Benefit: | + May be fully forgiven + Must be in business on 2/15/20 and have employees + Helps keep your employees on payroll vs. laying them off and them filing for unemployment. + Enables you to rehire employees you may have already laid off. + Allows you to utilize your current revenue or savings for planned growth and preparation for business demand following COVID-19 rather than applying that revenue to just payroll and expenses. | + The $10,000 loan advance may not have to be repaid + Lets you continue to run your business by providing money to pay for expenses + Repayment up to 30 years. 3.75% fixed interest rate/nonprofit rate is 2.75% + The $10,000 loan advance will be made available within three days of a successful application. |
| Qualifications: | ❏ Less than 500 employees ❏ Businesses with more than 500 employees are eligible in certain industries ❏ Certification process requires you to keep employees on the payroll or rehire quickly ❏ Other qualifications your trusted bank can go over with you | ❏ Less than 500 employees ❏ In operation before 1/30/20 ❏ Go through eligible entity verification checklist https://covid19relief.sba.gov/#/ |
| Requirements: | ● The money borrowed can only be applied to a consecutive 8 week time period of your choice between Feb 15-June 30 ● At least 75% of the loan has to be used on payroll, includes benefits ● Have an expert calculate your needed amount correctly - any amount you borrow that is not used in the 8 weeks, turns into a loan with a maximum repayment of 10 years at 4% interest ● You have to keep careful records to prove what you spent the money on in order for it to be forgiven | ● The money borrowed can only be used for fixed debts: real estate, personal property, economic injury, machinery and equipment, inventory and payroll.* ● *NOTE: It would likely be in your best interest to apply for the PPP if you need assistance |
| Moving Forward: | 1. Consult with a trusted bank 2. Campolo can provide necessary reports to help you determine you the amount you will qualify for 3. Applications become available Friday, April 3 4. Deadline to apply is June 30, 2020 This is a First Come, First Serve Program This program has a CAP of $349 Billion, for the entire U.S., when it’s gone, it’s gone. | 1. Visit link below to fill out the application. It is estimated the process will take approximately 2 hours and 10 minutes 2. Check your application on sba.gov and check Message Center for any additional requirements you must submit 3. If you qualify, money will be direct deposited into your account for immediate use Accepting Applications Now |