Hello everybody. It’s your friend Jesse Stoddard here, and today I am going to talk about ciphering and decoding the cryptic language on bailout sites. I know that’s a funny title. Here’s the reason.
This is part three in my Good News for businesses report, which intends to encourage you to pivot your business and how to have a positive effect on your business during Covid-19 lockdown.
There has been a ton of information passed around on all the government bailouts and help for small businesses. Today I will clarify a couple of things for you before I go further. If you are a small business, now we at Stoddard Agency are helping in two very specific ways.
How Stoddard Agency helps businesses:
There are so many things that we can do to get your business moving forward in a positive direction. These are just three things I want to show you we are doing now.
- We primarily help small fuel businesses.
- Work with Vantage Targeting – I partner with these guys for businesses making $5 million and above.
- Challenging time.com is our link that will help a small business thrive in challenging times. Please go there so that you can grow your business and expand as much as you want.
Deciphering bailout sites (aids) for your business
There are two main government programs that can help your business survive Covid-19.
- Paycheck Protection Program
If you go to the SBA (Small Business Administration) website, which is at sba.gov. It reads like how you may feel. You may have entered your information and downloaded their form, which is a two page PDF. However, after you fill that in, they want 15 different things from you that take you a week to gather. There is a lot of information here, and there is going to be some red tape. I’ll explain this to you.
Paycheck Protection Program – PPP
This program relates to the Cares Act, a program by the government security department agency. It helps your business receive loans to help you cover for paid sick leave, payroll shortages, and expenses stemming from group health care benefits, which affect mortgage payments, salaries, and any other debt obligations.
- PPP incentivizes businesses
- If you are a small business, by their definition, less than 500 employees, it will allow you to keep all the employees on the payroll for at least eight weeks.
- Not for businesses whose employees have filed for unemployment.
- For businesses with employees who have stayed on the payroll.
- SBA will forgive loans received through that program.
- Otherwise, the loan has a maturity of two years and an interest rate of 1%
- Will only pay for employees who work in the United States. It does not cover off-shore employees.
- The primary purpose is to keep employees on the payroll.
Loans include economic injury, disaster loans, and the economic injury disaster loan advance. These are two different things, but they’re essentially all part of the loan, and they’re saying that a part of it is forgiven.
- IDL – Economic injury, disaster loan. A longstanding government program that is designed to help small businesses who’s been hit with economic injury. It will provide you up to $2 million of financial aid.
- The amount of assistance determined by the scale of economic injury your businesses suffered.
- You can apply for both the PPP and the IDL.
- You can not combine them into one.
- It’s important to know that you can’t combine the two loans to pay for the same expense. You can’t combine both loans to cover rent or other mortgage interest. You have to use one for one expense, one for the other, and you need to show that very specifically.
- Small businesses that employ less than 500 people can apply. Small businesses also include freelancers, sole proprietors.
- The $10,000 advance doesn’t have to be repaid, but the rest of your loan will need to be paid back.
- The interest rates about 3.75% (Do not quote us on this as these things change daily.) All businesses are different and depend on the business’s particular situation.
- Economic injury disaster loan advance – Specifically for Covid-19. It enables a loan for up to $10,000.
- The SBA has traditionally not considered lost revenue to qualify you for economic injury.
- The program is specifically tailored to hold the business over from a temporary loss of revenue.
- Loan advance does not have to be repaid for loss of revenue.
- The payment is automatically deferred for the first year though interest will still be occurring.
Now before I go further, in case you’re coming in late on this, I am not an attorney or an accountant. In fact, I have no qualifications at all. You have to read and do the research because it changes by the second.
Three things you have to do while or before checking out relief Covid-19 loan option programs
- Go to https://www.sba.gov/ and read their coronavirus (COVID-19): Relief options
- Talk to your attorney
- Talk to you accountant
DISCLAIMER – Do not do what I am telling you. You have to do your own homework! This is a review of what I read and how it pertains to businesses in a very general way. I’m only telling you where to go for assistance and what my perspective is. You need to do your due diligence.
Do get good leads with my help
My hope is that we’re going to bounce out of this thing because America needs it and is demanding it. I’m trying to help them (your business and others) by keeping the lights on and keeping leads flowing. Contact me:
- If you’re in a tough spot, and you might already have people you’re working with, but if you would like to potentially save money or want to work with a consultant and an agency.
- If you need a solution for your small business. I’ve got a really great report that’ll help you with this. It’s FREE. You just opt-in on my page called challenging time.com. Go there, opt-in, fill out a simple form with your name and email. I will send you an email and a video.
I’ll email you with some fantastic insights on how you can survive and thrive. I’ll show you how to play offense rather than just defense.
Thanks for joining me today. I’ll be back with some more information next time, and you’re going to notice I’m talking more and more about this. I’m going to be talking about behavioral targeting and that I believe it’s the future of marketing. Especially if you’re trying to become a big business or you’re already a big business. You’re going to want to know about it, and what’s coming up next time. Thank you for joining me.
Click Stoddardagency.com for more information.