Important Message Regarding COVID-19

New information is becoming available multiple times per day and we are committed to getting it to you as quickly and clearly as possible.

The Coronavirus Aid, Relief and Economic Security Act (CARES) was passed by the Senate last night and hopefully it will be approved as is by the House today or tomorrow.

The Bill is 883 pages long, but here are the key provisions proposed for business owners related to the SBA loans. Additional, updates will follow shortly regarding the other provisions for busineses.

Small Business Interruption Loans:

The Small Business Administration (SBA) has created the Paycheck Protection Program and has modified and expanded their lending requirements.

Who is eligible?

For profit and non-profit organizations with less than 500 employees are eligible that was in operation as of March 1, 2020. Also, it is for business owners that paid salaries and payroll taxes prior to March 1, 2020.

For sole proprietors and independent contractors, payroll costs is defined as the sum of all compensation payments including wages, commissions or similar compensation capped at $100,000.

What is the maximum loan amount?

The average total monthly payments for the employer for the following expenses including payroll, mortgage payments, rent payments and payments on any other debt obligations incurred during the 1 year period before the date the loan is made multiplied by 12 months. (Maximum is $10,000,000).

What can the loan proceeds be used for?

  • Payroll support including paid sick, medical or family leave and costs related to the continuation of group health care benefits**
  • Employee salaries** (maximum individual compensation of up to $100,000 per year)
  • Mortgage payments
  • Rent
  • Utilities
  • Any other debt obligations that were incurred before the covered period

*Payroll costs shall not include qualified sick or family leave wages for which a credit is allowed under the Families First Coronavirus Response Act

**Compensation of an individual employee is limited to $33,333 during the covered period (March 1, 2020 to June 30, 2020)

Is there a fee for this loan?

For the majority of business owners the SBA will be waiving the application fee for the Small Business Interruption loans. The lenders fee will be 5% for loans under $350,000, 3% for loans between $350,000 to $2,000,000 and 1% over $2,000,000.

What is the interest rate?

3.75% - 4% interest

When do the loan payments start?

Payments will be deferred from 6 months up to one year.

Can this loan be forgiven?

The lender will forgive the amount of the loan used for maintaining payroll continuity during the covered period (March 1, 2020 through June 30, 2020).

There is a limitation on the debt forgiveness- details to follow.


Please be advised, the SBA anticipates processing delays due to the number of applications.

SBA Express Bridge Loans:

The SBA has an express bridge loan up to $25,000 for employers to provide funds to bridge the gap while applying for an the SBA Economic Injury Disaster Loan.

To find an Express Bridge Loan Lender CLICK HERE

We will continue to keep you informed about changes that directly impact and benefit you. In the meantime if you have any questions, please don’t hesitate to contact DiSalvo And Company, P.A.!