$2 Trillion Emergency Aid Bill Brings Relief to Small Businesses
AmTrust knows this is a difficult time for our country. Small businesses are doing their best to stay afloat. AmTrust wants to make sure our agents and policyholders are aware of the resources available to help, including the newly signed Coronavirus Aid, Relief, and Economic Security (CARES) Act.
SBA loans are expected to be available starting Friday, April 3. Small businesses that are interested in obtaining an SBA loan should call their bank to find out if they are an SBA lender, or they can click here for a list of the most active SBA 7(a) lenders in the United States. To review a sample application, click here. Small businesses can prepare by gathering the following:
2019 Payroll – including the last 12 months of payroll
2019 Employees – 1099s for 2019 employees and independent contractors that would otherwise be an employee of your business
Healthcare costs – all health insurance premiums paid by the business owner under a group health plan
Retirement – your company retirement plan funding paid for by the company
The CARES Act Includes:
Paycheck Protection Program (PPP) Loans: Provide capital to cover the costs of retaining employees, such as for salary and wages, healthcare benefits, sick time, retirement benefits and more.
Loan Forgiveness: SBA will forgive the principal amount of PPP Loans that a lender reasonably expects a borrower will expend during the 8-week period beginning on the date of origination for the loan on the sum of certain (a) payroll costs, (b) mortgage interest, (c) rent obligations and (d) utility payments.
Economic Injury Disaster Loans (EIDL) and Emergency Economic Injury Grants (EEIG): Provide loans and grants to small businesses and private nonprofits harmed by COVID-19.
Training and Counseling: Resource partners across the country may receive extra funds to help support small business owners with free counseling and low-cost training regarding COVID-19.
Additionally, the CARES Act will provide unemployment benefits for certain freelancers and contractors who would not typically qualify for unemployment.
Download our graphic on the PPP Loans to share with your insured. This document can also be cobranded by emailing: cobranding@amtrustgroup.com.
To learn more or to apply for assistance, please visit the U.S. Department of Treasury’s website: https://home.treasury.gov/cares
This material is for informational purposes only and is not legal, tax or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is accurate, appropriate or suitable for any specific business, tax or legal purpose. Readers seeking resolution of specific questions should consult their business, tax and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.
AmTrust is here to support our agents and policyholders with helpful resources during these uncertain times, including information about loans, safety tips for essential businesses and more. Please continue to contact us via the normal channels for claims, payments or any other issues.
