How to Apply for New SBA Loans to Cover Payroll Through the CARES Act
On March 27th, the CARES Act was passed to help aid small business during the impact of the COVID-19 pandemic. This stimulus has created a loan program to help aid small businesses during this time. If you are currently own a small business in the Spray Foam Insulation , Spray foam Roofing , Polyurea, Concrete Lifting, Epoxy, Blasting, Fireproofing, Intumescent Coatings or Mortar industry, Spray Foam Systems is here to help you apply for your SBA loan. Find information on the CARES Act below.
To have a member of our SFS team help assist with applying and additional information contact us at 877.7374362 or [email protected]
CARES Act (Paycheck Protection Program)
Covered Period: 2/15/20-6/30/20
Allowable Purposes – Payroll Costs (collect and document for 2019 and YTD)
o Salary, wage, commission, or similar compensation
o Payment of cash tip or equivalent
o Payment for vacation, parental, family, medical, or sick leave
o Allowance for dismissal or separation
o Payment required for provisions of group health care benefits, including insurance premiums
o Payment of any retirement benefits
o Payment of State or local tax assessed on compensation of employees
o Compensation to independent contract or sole proprietor that is wage, commission, income, net earnings from self-employment, or similar compensation that is in an amount that is not more than $100,000
NOT INCLUDED:
▪ Compensation of an individual employee in excess of an annual salary of $100,000 (pro-rated for covered period)
▪ Compensation of an employee whose principal place of residence is outside of the United States
▪ Along with a few other provisions related to credits received from other government programs (i.e. sick leave qualified wages for which a tax credit is allowed under section 7001 or 7003 of the Families First Coronavirus Response Act.
Eligible Small Businesses
o Expanded definition of 7(a) to include all businesses with not more than the greater of:
▪ 500 employees*; or,
▪ Size standard established by SBA for industry
Additional inclusions:
▪ Sole proprietorships, independent contractors, and eligible self-employed individuals
• Prepare payroll tax filings reported to IRS, Forms 1099-MISC, and income/expenses from sole proprietorships
o Waiver of SBA affiliation rules
– Credit Elsewhere Qualification test waived
– 100% government guaranty
– Unsecured loan
Back to How to Apply for New SBA Loans to Cover Payroll Through the CARES Act
