Small businesses could get SBA loans as early as 2 weeks. Here’s who is eligible

President Donald Trump signing unprecedented deal $ 2 trillion economic stimulus plan aimed at supporting American businesses and individuals, you are probably wondering what this all means to you as a small business owner.

Companies with less than 500 employees can qualify for loans which represent $ 350 billion in global aid. Additionally, businesses with more than 500 employees – generally considered the upper threshold for distinguishing small businesses – are eligible for loans if they operate in the food or accommodation industries or are purpose-built organizations. nonprofit or veterans. Neil Bradley, Executive Vice President and Director of Policy at the United States Chamber of Commerce, shared details of the so-called Paycheck Protection Program with Inc. editor-in-chief Kimberly Weisul at the National Small Business Town Hall, a live webinar hosted on Friday by Inc. and the House.

Bradley said he believes business owners can expect the loans to be available within two weeks. When asked if he thought a week was possible, he replied, “I would bet if we made that call next week we would talk to people who have already applied for the loans and were in the process of making this call next week. receive them. “

The maximum value of a business loan is based on the average monthly salary cost of that business in 2019 – including salaries for employees earning less than $ 100,000, as well as expenses for paid sick leave, health care. health and other benefits – multiplied by 2.5. This equates to 10 weeks of salary expenses. The maximum loan amount available is $ 10 million.

Bradley pointed out that the program has important distinctions from traditional government loans. Businesses won’t need to try to get a loan elsewhere first, and won’t need to provide a personal guarantee or collateral. Bradley advised small businesses to start calculating their average monthly salary costs from 2019 now so they can speed up processes once they go to their lender.

It is important to note that small business loans can be converted into repayable grants as long as the business does not lay off its employees. The wage costs of dismissed employees will not be forgiven. For every employee who earns less than $ 100,000, companies can reduce their pay by up to 25% before the loan forgiveness amount begins to decrease.

Panelist Marilyn Landis, CEO of service company CFO Basic Business Concepts, added that businesses should visit SBA.gov to make sure they are eligible for particular loans before going through the application process. She also pointed out that the package contains aid for spending beyond the wage bill depending on the business sector of the company. “Identify what you need, then find a program that seems to meet that need,” she said. “Then find out if there are anything unique about this program that apply to you or your industry.”

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