Here, finally, are the details on the programs to help small businesses affected by COVID-19 under the new $2 trillion relief package just passed by Congress.
The experts advise businesses to apply for assistance as soon as possible.
The new relief package is called the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The guide below explains a few key programs suitable to car audio retailers and suppliers.
One program allows small businesses to get a loan to keep employees on the payroll, with options for loan forgiveness for up to 8 weeks of payroll.
Another program provides up to $10,000 in grant money, within 3 days of applying for a loan. This grant of up to $10K does not need to be repaid under any circumstances.
A third program offers debt relief on your existing SBA (Small Business Administration) loan, if you have one.
This information is provided by the US Senate Committee on Small Business & Entrepreneurship. We obtained it through the kind help of Mark Miller, Owner of Westminster Speed & Sound, MD.
You can start with these three questions:
Do you need:
•Capital to cover the cost of retaining employees? Then the Paycheck Protection Program might be right for you.
•A quick infusion of a smaller amount of cash to cover you right now? You might want to look into an Emergency Economic Injury Grant.
•To ease your fears about keeping up with payments on your current or potential SBA loan? The Small Business Debt Relief Program could help.
•Just some quality, free counseling to help you navigate this uncertain economic time? The resource partners might be your best bet.
To keep up to date on when these programs become available, please stay in contact with your local Small Business Administration (SBA) District Office, which you can locate here.
For full details see the entire document here.
So this is NOT available to LLCs ?
Thanks for posting, Amy.
A few items for retailers to note:
– The six-digit NAICS Code for most retailers falls under 441310. Retailers will need that to get the process started. I checked and it’s “available” as a qualified business code for some of these programs.
– Businesses and entities who have been in operation on February 15, 2020 and under 500 employees can qualify for the Paycheck Protection Program (PPP) Loans and the Small Business Debt Relief Program (not disaster relief-related.
– According to the documentation, LLCs, S-Corps and C-Corps DON’T qualify for the Economic Injury Disaster Loans & Emergency Economic Injury Grants. Only Sole Proprietorships (with or without employees and Independent Contractors. Other qualifiers for that are Cooperatives and Employee-Owned Businesses, Tribal Small Businesses and Non Profits. (typically none of which are a 12 volt retailer).
Generally speaking for loans/relief payments, retailers should be prepared to submit:
– 1.5 hrs of time to work through applications
– 2018 Business tax return – they will need to upload
– 2019 P & L statement to get Sales and Cost of Goods Sold
– Schedule of Business Debt (if any)
– Personal Financial Statement info:
– Cash in bank accounts
– Home purchase date & original cost IF they own their home
– Current value (lower is better)
– Mortgage balance & loan payment info (if applicable)
– Cars owned (lower the value the better)
– Other personal debts (if any)
– Contingent Liabilities (As Endorser or co-maker) put total of all company debt.
– Upload signed 4506-T. This is the form that allows loan processors to get copies of the retailer’s tax return for the business – basically to verify the information is accurate.
Tough and uncharted waters, but we’ll all get through this!
Stay safe.
TODD RAMSEY
Good stuff! Thank you Amy and thanks Mark 😊
Stay safe and healthy everyone!