Last week's passage of "Phase 3" coronavirus relief for American businesses and workers exceeded $2 trillion. Needless to say, that's a lot for anybody to sort through, especially in addition to the "Phase 2" legislation that was passed prior and separate programs being offered by the Small Business Administration. So we dug into the details and have the information specific to small employers that you need to know.
 
First, let's discuss the small business loan program included in the legislation:

• Congress appropriated $350 billion for small business loans called "Payroll Protection Loans"
• Small businesses (fewer than 500 employees), 501(c)(3)s, self-employed business people, sole proprietors, and independent contractors are all eligible to access the loans
• Lenders are expected to defer fees, principal, and interest for 6-12 months
• The loans can be forgiven up to 100% of expenditures toward payroll (including tips for tipped employees), utilities, mortgage interest, rent for the eight weeks after loan origination
• Loan forgiveness is reduced proportionally if the employer reduces the number of full-time employees and/or if wages are reduced by more than 25%
• Loan forgiveness reduction can be avoided if employer brings back employees and restores wages within 30 days and maintains that payroll through June 30
• The vast majority of national and local lenders will be eligible to offer the loans
• The maximum loan amount an employer can take on is the lesser of 2.5 months of average payroll or $10 million
• Neither a personal guarantee nor collateral are required
• Loans will be available starting on Friday, April 3 for small businesses, non-profits, and sole proprietorships
• Loans will be available starting on Friday, April 10 for independent contractors and self-employed individuals
• Since funds are limited, the SBA recommends reaching out to an SBA-approved lender (your local bank or credit union) to make sure they're participating as soon as possible

• Small businesses and non-profits (including faith-based) with fewer than 500 employees are eligible, including sole proprietors and independent contractors
• $2 million maximum loan on an up to 30-year term with a 3.75% interest rate (2.75% for non-profits)
• Up to $200,000 without a personal guarantee
• Loan payments will be deferred for one year, but unlike the small business loans from the CARES Act, the SBA loans are not forgivable loans
• $10,000 emergency grant within three days that doesn't need to be repaid
• Apply at SBA.gov, and for a step-by-step tutorial on how to apply for these loans here