By Arlett Ramirez
Assistant Web Content Manager
SAN MARCOS, Texas – The San Marcos Area Chamber of Commerce has gathered all the resources to provide aid to small businesses and owners that are struggling in the coronavirus pandemic after the passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Paycheck Protection Program (PPP)
The PPP authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the coronavirus crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent and utility costs over the eight week period after the load is made; and
- Employee and compensation levels are maintained.
Loan payments will be deferred for six months.
Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Economic Injury Disaster Loan (EIDL) Program Guide
The EIDL program was created to assist businesses, renters and homeowners located in regions affected by declared disasters. The program is applicable to small businesses and most small nonprofits (less than 500 employees), sole proprietors and independent contractors.
Those who are eligible are:
- Businesses with fewer than 500 employees
- Cooperatives, ESOPs, and tribal small business with fewer than 500 employees
- Sole proprietors
- Independent contractors
- Most private nonprofits
Employee Retention Tax Credit Guide
The CARES Act also created a new employee retention tax credit – that does not have size restrictions – for employers who are closed, partially closed or experiencing significant revenue losses as a result of the coronavirus pandemic.
Those who are eligible are private employers, including non-profits, carrying on a trade or business in 2020 that:
- Have operations partially or fully suspended as a result of orders from a governmental authority due to COVID-19 or
- Experience a decline in gross receipts by more than 50% in a quarter compared to the same quarter in 2019
Employers who receive a PPP loan are not eligible for a tax credit.
For more information visit the San Marcos Area Chamber of Commerce website.