Forgivable loans to pay your employees and a hotline to connect you with economic help

Today on In the Hive we examine some of the resources available to help businesses and organizations weather the financial turmoil caused by COVID-19. In particular, the Paycheck Protection Program which offers Small Business Association (SBA) loans to help businesses keep workers on their payrolls. Loans will be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Check with your own lender to see if they’re SBA-approved, or check this list from the Utah Banking Association. There’s also a new Business Relief Hotline from Salt Lake County offering help to businesses that are struggling during this crisis. That number is: (385) 468-4011.

Guests:
Christopher Stever, Deputy District Director with the U.S. Small Business Administration
Dina Blaes, Regional Development Director for Salt Lake County
Howard Headlee, President, Utah Bankers Association

UPDATE: Some key changes were made yesterday to the SBA’s Paycheck Protection Program. Here are four quick takeaways. This update is as of the afternoon of April 3, 2020.

  • The interest rate for any portion of the loan not forgiven is now 1% (up from .5%)
  • Unless you are a new business or a seasonal business, the average monthly payroll cost should be calculated using the prior 12 months from the application date (for example, April 1, 2019 – March 2020) instead of the 2019 calendar year average as was previously suggested
  • To qualify for loan forgiveness, at least 75% of the forgiven amount must have been used for payroll
  • Independent contractors no longer count as employees for purposes of PPP loan calculations because they “have the ability to apply for a PPP loan on their own” (that application process is planned to open April 10)

Here’s the U.S. Treasury’s latest guidance for borrowers (updated 4/2/20): https://home.treasury.gov/system/files/136/PPP–IFRN%20FINAL.pdf

Link to a list of financial resources compiled by KCPW:

Resources to help weather financial impacts of COVID-19

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