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Originally Posted by Mr Pete
Well, my understanding, there are 2 parts. One is the economic disaster loan, which is a $10k advance that can be a grant. You can apply for this on the sba.gov site.
What I am waiting for is the Payroll Protection Plan as part of the CARES act of the stimulus bill. It will cover whatever your average operating costs were from 12 months prior to when you closed your business/your business was impacted by the covid outbreak.
It will cover payroll costs (up to $8333/month per employee, based on a max annual reimbursement of $100k/year. So if you made $150k last year, the PPP will only cover up to $100k), rent, utilities, and possibly interest on debt you had (mortgage, business loans, etc). You will essentially have overhead cost protection for 8 weeks.
This is through the sba, but you will have to apply through whatever financial institution you bank with. You should contact your bank and speak to your small business banker.
I don't think you being a sole proprietor should matter, as long as you are incurring payroll costs. You'll most likely have to show 941 documents to show payroll costs incurred, and possibly profit/loss and balance sheet. My banker mentioned this today, as he thinks this isn't your typical business loan that goes through 3-4 levels of underwriting.
I think the main goal of all this is to get money back into your employees, so they can continue to waste their money on iPhones, yoga pants for selfies and social media posts, eating out, buying 4K tv's because it's much cheaper now than 3 years ago, and lots of amazon today is a lazy Sunday type of day spending, vs saving it.
I'll pm you some webinar links I've watched.
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Thanks. I wanted to catch the EY webcast today but didn’t get a chance. The only thing is I’m schedule C, no 941s. Also work from home office so other than car lease, monthly overhead isn’t that much. So maybe I’m out. But it sure does sound appealing if I can get something since I know I’ll be paying for it later whether I get some funds now or not. Not to mention if business slows it would helpful.
My own interests aside, any small business with employees should definitely be looking into this ASAP.