We realize these are tumultuous times for our clients. To better assist the needs of our clients, we are assisting all our clients who have a basic or pro accounting package, with the SBA Economic Injury Disaster Loan Application and Paycheck Protection Program Forms at no additional charge.
economic injury disaster loan
For clients impacted by COVID-19, the Economic Injury Disaster Loan (or "EIDL") provides clients with an up to $10,000 grant which does not need to be repaid, if used for qualified business expenses. This is instituted by the Small Business Administration. We assist the clients with this application in real-time, via a shared video conference. This is to help clients with much needed relief. In addition, the EIDL allows clients to take out disaster loan amounts up to $2 million at favorable interest rates (capped at 3.75%).
paycheck protection program
In addition, part of the stimulus package provides incentives for small business owners to keep their employees on payroll. For businesses under 500 employees, the Paycheck Protection Program allows qualified employers to take out a loan based on payroll costs. The amount of the loan is based on monthly payrolls. Eight weeks after the origination of the loan, if the funds were used on qualified expenses, the loan is forgiven.
We help clients prepare the initial forms needed by the banks for these loans, at no cost. The banks will start processing these loans starting April 3, 2020 for small business owners, and April 10, 2020 for independent contractors.