is the day that Auto Recyclers should submit to claim their share of millions in forgivable COVID-19 SBA Loans - Call your banker today!
Under the CARES Act signed into law last Friday, the federal government will provide loans to small businesses, called the Paycheck Protection Program. The maximum loan amount under this program is 250 percent of average monthly payroll cost up to $10 million. It is intended to cover 8 weeks of payroll and debt obligations. The program expands usage to include payroll support, salaries, rent or mortgage payments, utilities and interest on debt occurred during this time period. THE RATE IS 1.0 Percent FOR 2 YEARS. Loan payments will be deferred for at least 6 months. Loan forgiveness will be based on eligible uses including the retention of employees or quickly rehiring. Newly revised details, terms and eligibility for loans within the PPP are found HERE including rules on the treatment of higher levels of compensation.
Other information and application links are below:
Banks apparently did not receive official guidance until last night and it came in the form of the top link - only 31 pages of information. While your bank might not be quite ready, have patience but make sure that you are ready with the above links.
In addition, under the CARES Act, the Small Business Administration will give businesses a $10,000 grant just for applying for an Economic Injury Disaster Loan. The government must provide that $10,000 in three days. For information and to apply for the Economic Injury Disaster Loan (EIDL) apply today at this link: https://covid19relief.sba.gov/#/
The federal government released detailed guidance on the “paid leave for workers and tax credits for small and midsize businesses.” The two refundable payroll tax credits will provide financial relief to businesses with fewer than 500 employees. Businesses with fewer than 50 employees will be eligible for an exemption from leave requirements if they would “jeopardize the ability of the business to continue.”
An illustrative example of the tax credit from the Treasury guidance is as follows:
“If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.
If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments, and file a request for an accelerated credit for the remaining $2,000.
Equivalent child-care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments."
An explanatory notice was published and can be found HERE.
It has been reported that Ford Motor Co. is floating an idea to the government of a post pandemic automotive stimulus package and they are apparently suggesting a "cash for clunkers"-type program fashioned after the original 2009 program. A Ford Vice President stated that “Cash for Clunkers was very effective at that time….It would be nice to think we could have something equally as effective for 2020 when we get out of this because it was a great program." ARA will stay on top of this issue of critical importance to recyclers.
LISTEN TO THE ARA WEBINAR ON PPP
To play the recording that aired on April 2, 2020 of Understanding the Paycheck Protection Program, with Paul Economon of Fisher Broyles law firm, please use either of the links, on YouTube visit HERE, or on the ARA Facebook page, visit HERE.
KPA Sponsored COVID-19 Resource Center
For all resources, go to ARA's COVID-19 Resources
For the resource links, go to ARA's COVID-19 Links