In these extraordinary times, it is critical that our communities unify and work together to rise to this challenge. The Coalition’s leadership has come together to gather and share facts and solutions to help support our regional small businesses. Should you have any questions, concerns or need a resource, please reach out using the contacts listed here.
Hosted by the Minority & Women’s Chamber Coalition. Zoom call recorded in Denver, CO on 4.3.2020. Speakers include SBA, Office of Economic Development and International Trade, Minority Business office of Colorado, and attorneys from Campbell Litigation. Attendees received detailed information about the current stimulus measures, resources, and how COVID-19 can impact employers.
The U.S. Small Business Administration (SBA) released the official rule for the $349 billion Paycheck Protection Program (PPP), including the formula for calculating loan amounts and what the loan can cover. Small businesses and sole proprietors can begin applying for the federal loans through their lenders today. Independent contractors and self-employers can apply beginning April 10.
Under the rule, businesses with 500 or fewer employees and 501(c)3 organizations are eligible to apply as long as they were in operation on Feb. 15, 2020. Sole proprietors and independent contractors are also eligible, but independent contractors need to apply themselves. A company cannot apply on behalf of a contractor.
The maximum loan amount is $10 million at an interest rate of 1% and a two-year term. PPP loans will be provided on a first-come-first served basis, so we recommend contacting your current lender as soon as possible to apply. Lenders will prioritize their current customers’ applications. If you do not have a current lender or your lender is not participating, see the SBA’s tool to find eligible lenders.
The following items qualify as payroll costs.
For independent contractors or sole proprietors, qualifying costs include wage, commissions, income or net earnings from self-employment or similar compensation.
Twenty-five percent of the loan can also be used to pay for:
To calculate your loan amount, use the following formula.
The loans may be fully or partially forgiven if the money is used for payroll, health care premiums, rent, mortgage interest or utilities over the 8-week period following origination, AND the employer either continues to employ workers or rehires them when the business reopens. However, no more than 25% of the loan forgiveness amount may be for non-payroll costs.
Your lender will need you to submit an application and payroll documentation.