Retain staff with the Paycheck Protection Plan
Standard and Express options available
The Federal Government is moving at a fairly fast pace to build and launch relief programs to help members of the small business community. The suggestions of what to provide have been many, and the changes in proposals and existing programs have been rapid, making it hard for businesses owners to keep up with and understand the federal resources available to them at this time.
Status: President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) into law on March 27, 2020.
Basic Overview: The SBA 7(a) CARES Paycheck Protection Program loans are a proposed expansion of the existing SBA 7(a) Standard Loan program. There are five primary differences between a SBA 7(a) Standard Loan and the SBA 7(a) CARES Paycheck Protection Program loans:
Gold Card Capital is working with SBA approved lenders to rapidly process applications for these loans as soon as they become available
Status: Active; Accepting Applications from Small Businesses
Basic Overview: The SBA 7(B) EIDL Loans are low-interest, fixed-rate loans available to all businesses and private non-profits who show an economic impact as a result of disasters like COVID-19. These loans are available in amounts up to $2 Million dollars, but the amount a business will qualify for is dependent on the degree of economic injury sustained. There is also an option to apply for an Economic Injury Disaster Loan advance of up to $10,000 which will not have to be repaid.
You must apply for a loan under this program directly through the SBA
Status: Active; Accepting Applications from Small Businesses
Basic Overview: All SBA loan programs, including the popular SBA 7(a) Standard Loan and 504c Loan Programs that existed prior to the COVID-19 global pandemic and its subsequent relief efforts, are still running and actively accepting applications. All requirements and conditions that existed within these programs prior to these relief efforts are applicable.
Gold Card Capital is working with SBA approved lenders to expedite applications
CARES 7(a) PAYCHECK PROTECTION PROGRAM | ECONOMIC INJURY DISASTER LOAN (EIDL) 7(b) | STANDARD 7(a) | |
---|---|---|---|
ELIGIBILITY | – US based businesses – Operating on February 15th, 2020 – 500 or less employees, or the employee limit governed by NAICS code – Can certify economic impact due to COVID-19 |
– US based businesses – Economic hardship due to COVID-19 can be shown via a decline in revenue |
– US based businesses (for profit only) – Minimum personal credit score of 680 – Establishment of business credit – Minimum of 2 years in business – Business is profitable |
CALCULATION ON FUNDING AMOUNT | 2.5 X your prior average monthly payroll | Dependent on loss incurred due to COVID-19 | Dependent on application |
MAXIMUM AMOUNT | $10,000,000 | $2,000,000 | $5,000,000 |
MAXIMUM TERM | No payment for the first 6 months Term up to 2 years |
Up to 30 years | Up to 25 years |
MAXIMUM INTEREST | 1% | 3.75% | Prime + 3.7% (Current prime is 3.25%) |
LOAN/PRINCIPAL FORGIVENESS | Yes | No | No |
CAN BE COMBINED WITH | – Standard 7(a) loan (if obtained before 2/15/2020) – EIDL 7(b) loan |
– Physical Disaster Loans with a maximum combined amount of $2,000,000 – CARES 7(a) Paycheck Protection Plan – Standard 7(a) loan |
– EIDL 7(b) loan |
CANNOT BE COMBINED WITH | – Standard 7(a) loan if obtained after 2/15/2020 – New Standard 7(a) loan application |
– An existing CARES 7(a) Paycheck Protection Plan loan | |
APPLICATION SUPPORTING DOCUMENTS | – Payroll documentation showing number of employees and amounts spent over last 12 months – 3 months of business bank statements – Transcripts from payroll taxes paid |
– Most recent Federal Tax Return – Year end profit and Loss statement – A current year to date Profit and Loss statement – Monthly break down of sales figures |
– Business financials relevant to the past 90 days (balance sheet) – Debt schedule or purchase contract – Past 2 years of business tax returns – Past 2 years of personal tax returns |
Learn more about Gold Card Capital today. Please call for any free analysis/consultation on 1-855-479-9380 or send an email to m_adelberg@goldcardcapital.com.