Re: COVID-19 update
The followings are more details regarding the SBA loan that I notified few days ago. Please note that the loan forgiveness shall apply only for the Section 7 (a) and $10,000 of the Section 7 (b) loan.
- Section 7(a) Paycheck Protection Loan
1) Loan Forgiveness Reductions
The loan forgiveness reduction based on workforce reductions is calculated by taking the amount eligible for forgiveness and multiplying it by the average number of full-time equivalent employees (FTEs) per month employed during the eight-week period beginning with the loan funding date over one of the following:
- the average number of FTEs employed per month from February 15, 2019 through June 15, 2019; or,
- the average number of FTEs employed per month from January 1, 2020 and ending on February 29, 2020.
2) Application deadline will be 6/30/2020
- Section 7(b) Economic Injury Disaster Loans (EIDL)
1) Permissible use
EIDL advances of up to $10,000 will be processed within three days of applying. These advances do not have to be repaid, even if the applicant’s loan is denied while more than $10,000 of loan must be repaid. However, advanced amounts must be used for any or all of the following purposes:
- Payroll expense
- Interest for business loan
2) The borrower may receive up to $2 million, dependent on the borrower’s demonstrated economic injury and ability to repay. The interest rate is no more than 4% and a loan term of no more than 30 years.
Please consult with a qualified financial institution regarding the SBA loan programs above and select one fits to your very purpose.
I will update more details once it is more clarified.
Min Won, CPA
Min Won & Associates