Passage of the federal CARES has created two important SBA loan options for stations with 500 or less employees. Even if your station does not qualify, you have local advertisers that could benefit from the SBA loan program. So feel free to forward this information.
To access the SBA COVID-19 Resource center click HERE.
Payroll Protection Program (PPP Loan) – This loan is administered through SBA approved lending institutions. Contact your lending institution to see if they are approved to administer SBA loans. The PPP loans cover expenses (payroll, rent, mortgages etc.) for the period February 15th through June 30th 2020. Although a new interim Treasury regulation states that only 25% of the loan can go to non-payroll items.
If you retain your employees, these loans will include forgiveness provisions. Banks have already received instructions regarding these loans. Contact your lending institution ASAP.
On April 2nd, The Treasury Department issued several informative documents HERE.
PPP Information from the SBA HERE.
PPP Borrower FAQs and Answers HERE.
Find an Eligible SBA Lender (search by zip code) https://www.sba.gov/paycheckprotection/find
Interim Final Rules – Read pages 5-18 for explanations about borrower eligibility. Discusses new rules that only 25% of loan can go to non-payroll costs HERE.
PPP Borrower Application Form HERE.
For instructions click HERE.
Economic Injury and Disaster Loans (EIDL) – These loans are administered directly by the SBA. You do not need to go through an SBA lending institution. The application process has been streamlined and should only take 10-20 minutes. (You will need profit and loss information from Feb 1, 2019 to Jan 31, 2020.) If eligible, you can receive a $10,000 grant within 72 hours.
The SBA has opened a new EIDL Loan Application web page https://covid19relief.sba.gov/#/
YOU CAN APPLY FOR BOTH LOAN PROGRAMS. However, they do interrelate. For example, if you get the $10,000 EIDL grant, it will affect the amount forgiven under the PPP loan. Also, the amount of the PPP loan that is forgiven may affect payroll tax deferrals.
For a Side By Side Comparison of Programs from the Bonadio Group CPA Firm click HERE.
To watch a webinar from the Bonadio Group explaining both SBA Loan Programs click HERE. (Frankly this is the best webinar I have seen on the subject)
See New York State Business Council summary of the Payroll Protection Program HERE.