Care Act Guide – Business Benefits

Loan Products

Name of the product Paycheck protection loan program (PPP) Economic Injury Disaster Loan (EIDL) SBA Express Bridge Loan: Emergency business loan (EBL)
The purpose of the program Encourage businesses to keep their employees during the shutdown. To restore businesses that have suffered substantial economic injury If you already have a loan through SBA to get quick relief
Expiration date of the program June 30, 2020 December 31, 2020 March 13, 2021
Business legal entity eligible C Corp, S Corp, Partnerships, Self-employed individuals, independent contractors,sole proprietors, and nonprofit are eligible that must have been in business on Feb, 2020 C Corp, S Corp, Partnerships, Self-employed individuals, independent contractors,sole proprietors, and nonprofit are eligible that must have been in business by Jan 31,2020 Small businesses located in any state,territory and the District of Columbia that have been adversely impacted by the COVID19 emergency.
Company Size Small business according to SBA regulations, or a business that employees less than 500 employees.

Restaurants with fewer than 500 employees per location but more than 500 overall, will still be able to qualify

Includes full time and part time employees
Small business according to SBA regulations, or a business that employees fewer than 500 employees.

Includes full time or part time employees
Small businesses according to according to the definition of SBA of small loans
Personal guarantee No None required for up to $200K. Above that amount, all 20% or more owners must guarantee the loan “Must follow their established and proven internal policies and procedures used for theirsimilarly-sized, non-SBA guaranteed commercial loans”.
Use of loan proceeds • Payroll
• Health care benefits & insurance premiums
• Employee compensation
• Mortgage interest obligations
• Rent and utilities
• Interest on debt incurred prior to the loan
More board expenses category including payroll and other expenses. It can include future obligations that cannot be met due to the economic loss of Coronavirus

If you apply for a PPP to cover payroll, you can not include payroll in EIDL as well.
Working capital, or for specific disaster-related purposes, such as the purchasesand repair or replacement of disaster-damaged equipment or inventory
Loan Amount Up to 2.5 times average monthly payroll costs. Decided by the applicant (make sure they are realistic numbers, since back up may be requested by SBA) Up to $25,000
Calculation Based on the 2019 Payroll if you were in business prior to 2020. If you started the business in 2020, you can base it on the average payroll of January and February payroll. No specific calculations are needed, but it’s based on working capital needs. No specific calculations are needed, but it’s based on working capital needs.
Loan Maximum $10 MM per business $2 MM $25,000
Restrictions and conditions for loan forgiveness individual payroll maxed at $100K/Year. Also employees in working in foreign countries

Not laying off employees during the covered period and if laid off rehiring by June 30, 2020
Not available Not available
Eligible states All All All
Eligible counties/ territories All All All
Interest rate • For new applicants, 5 years at 1%
• Old applications are still to at 1% over 2 years
3.75%, and 2.75% for nonprofits Prime rate + up to 6.5%
Term Up to 10 years for the unforgiven amount Up to 30 years (underwriting is needed) 7 years
If you have access to credit elsewhere You can still apply even if you have credit available elsewhere such as credit lines or credit cards You can still apply even if you have credit available elsewhere such as credit lines or credit cards You should certify that you
Loan payment deferral 6-12 Months deferral of principal payment, interest and lender fees First month’s payment is deferred for a year from the date of the note
Maximum number of employees l Fewer than 500 Employees
Forgivable Yes

Dollar for dollar spent on the allowed operating expenses rent, payroll, interest and utilities for an 8-week period after the origination of the loan and till June 30, 2020.,

If employees are laid off or payroll for an employee reduced by more than 25%, the forgivable amount will also be reduced at the same proportion.
Only the $10K advance can be forgiven, None
Advance None Up to $10k can be requested as an advance for working capital and is expected to be paid within 3 days if approved. If your loan is not approved, the $10 does not have to be repaid back.

If you receive this $10ISk as a grant, it must be deducted from what you will receive under PPP (if you do)
None
How to get the loan Apply through SBA approved lenders Apply on SBA website Apply through SBA approved lenders If you get
Cost to Apply Lender fees may apply. (part of the loan)

Application or package preparers fees if you used one (not advanced or included as part of the loan amount)
No loan, Guarantee or Prepayment fees

Application or package preparers fees if you used one (not advanced or included as part of the loan amount
Lender fees may apply. (part of the loan)
How to prep Gather the information about the expense for payroll, rent, utilities, interest Application (Mandatory)
Credit check (Mandatory)
Tax return (may be requested)
Notes Priority is given to the business that are 2 years or less, woman owned, socially and economically disadvantaged businesses, veterans and members of the military

If the crisis continues longer than expected, the time period covered may be extended as well.

This loan does not interfere with the Families First Coronavirus Response Act (FFCRA) for the sick paid leave credit.
Next Steps Find an SBA provider
If you need help, we are here to help you at 855-620-7988 or email us at info@3iscorp.com
Apply online
If you need help, we are here to help you at 855-620-7988 or email us at info@3iscorp.com
Find an SBA provider
If you need help, we are here to help you at 855-620-7988 or email us at info@3iscorp.com

How to calculate payroll costs according to PPP

Payroll Calculation Corporates of all kinds Sole Proprietors, Independent Contractors, and Self-Employed
Included • wages and commission, including customary 1099
• tip or
• vacation, family, medical, or sick leave
• retirement benefits allowance for dismissal or separation
• group health care benefits
• health care insurance premiums
• all state or local taxes that is applied to employee compensation (if applicable) but not including payroll taxes, which are excluded from the calculation
• wages
• commission
• net earnings
Excluded • amounts of $100K for any individual employee / self employed
• payroll taxes,
• income taxes
• employees residing outside of the united states
• Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act See the FFCRA schedule for more details
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