Since the stimulus bill was signed, there have been several adjustments and additions to it. Again, this bill is to help Americans during this COVID-19 pandemic. It is intended to try and slow down any supposed recession, by fueling more money into the hands of Americans and into the economy.
What the stimulus bill means for small businesses.
A way that the government will be assisting businesses through the stimulus deal will be by giving forgivable loans (FREE money!!!!) The government will also pay sick leave to employees of these businesses of up to $5,110 and $1,200 for employees family sick leave. This will be up until Dec 31, 2020.
There are 2 ways that people with small businesses can receive money from the government.
- The Economic Disaster Loan (EDL)
- The Paycheck Protection Loan
The Economic Disaster Loan.
This is on a first-come basis, where the government has dedicated $10 billion. The maximum amount that a small business can receive is $10,000. If we break it down this means that if each business received the maximum amount, then only 1 million small businesses would benefit from this program. Apply for this loan can be done online.
The Paycheck Protection Loan
This is the second way that small businesses can receive money through the stimulus program. The money received is 2 1/2 times the monthly amount earned. This applies to the employees of a small business, and to a self-employed individual. Applying for this must be in person, at your bank.
Which businesses can benefit from this:
- S-corporations
- C-corporations
- Partnerships
- Sole proprietors
- Individual contractors
Once this money has been received, the money must be used within 8 weeks, and the expenses must be accounted for.
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