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Info session planned on aid for local businesses

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The City of Evanston will host a free webinar for Evanston businesses affected by the COVID-19 pandemic Wednesday at which a representative from the federal Small Business Administratino will provide the latest information about the SBA’s Economic Injury Disaster Loan program.

This session will cover the basics of the program, how to apply and where you can get additional help with preparing and applying for an SBA Economic Injury Disaster Loan through the SBA’s website.

The webinar will be held at 1 p.m. Wednesday, and you can register here.

The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted last week, includes the Payroll Protection Program, which provides over $300 billion in small business stimulus.  

Maximum loan amount is 2.5 times the business’s monthly payroll, up to $10 million, with a maximum interest rate of 4%.

Loan forgiveness is available for the portion of the loan used to cover payroll costs, payments of interest on a mortgage obligation, rent obligations, health insurance, and utility payments made during the eight-week period following loan funding, but with a termination date of June 30.

Businesses that have fewer than 500 employees are eligible. No personal guarantees or collateral are required.  Payments may be deferred for up to 12 months.

A business may apply for both an SBA Economic Injury Disaster Loan and a Payroll Protection Program loan. Some conditions will apply.

More information is available online.

The CARES Act also includes deferral for payment of employer payroll taxes, provisions for write-off of facilities improvements, a tax credit for employee retention and modifications for Net Operating Losses

Details for each of those provisions is available here

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