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THE CARES Act- Small Business

Cypress Wealth Services

April 2020

Last week we emailed out a summary of The CARES ACT (Coronavirus Aid, Relief, and Economic Security Act) and covered the areas we thought would most impact our client base. After sending that email, we received a lot of questions regarding the aid available for small businesses. To help you better understand this topic, we have provided more education below. This is for informational purposes only, so we encourage you to contact your bank or the links below for additional details.

The Paycheck Protection Program

What Is It?

The Paycheck Protection Program consists of $350 billion in government-backed loans to help companies maintain their payrolls through June 2020.

How Does it Work?

Eligible companies can apply to borrow up to 2.5 times their average eligible monthly payroll costs, up to $10 million, and interest rates on the loans will not exceed 4%. Some or all of the loan might be forgiven. 

Who is Eligible?

The program is designed for companies and nonprofit organizations with fewer than 500 workers, which includes full-time, part-time, and other types of employees. Self-employed people, sole proprietors, freelancers, contract, or gig economy workers can also apply. Companies must have been operational on Feb. 15, 2020, to be eligible. The loans do not require a personal guarantee or collateral, and applicants will not be asked if they were denied credit previously.

We have attached a link to the U.S. Chamber of Commerce brochure, which provides excellent details and also outlines what portion of the loan may be forgivable. Click here.

Expansion of the SBA’s Economic Injury Disaster Loan Program

-  Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.

-  The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

-  Economic Injury Disaster Loans are also available to residents in declared disaster areas. To view the full list of disaster declarations, click here.

Please visit this link to learn more and apply. https://www.sba.gov/page/disaster-loan-applications

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The information on this website is provided as information only and should not be considered investment, tax or legal advice or a recommendation to buy or sell any type of investments. Advisory services are only offered to clients or prospective clients where our firm and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by our firm unless a client service agreement is in place.

Form ADV and Form CRS contain important information about the advisory services, fees, business, background, and experience of advisory personnel. Form ADV is publicly available and may be viewed here. Form CRS is publicly available and may be viewed here.

Investment advisory services are offered through Cypress Wealth Services, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. Securities are offered through M.S. Howells & Co., a registered broker/dealer, and Member FINRA/SIPC. The entities listed are not affiliated and neither offer legal or tax advice. Registered Representatives of named entities may only conduct business with residents of the states and jurisdictions in which they are properly registered.

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