Laurie is our guest again, and we cover how Heartland Bank can help you, as a sole-proprietor or self-employed, with the process of applying for the Paycheck Protection Program.
The CARES Act established a new $349 billion Paycheck Protection Program. The Program is providing much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
What can you use these loans for? You should use the proceeds from these loans on your:
- Payroll costs, including benefits
- Interest on mortgage obligations, incurred before February 15, 2020
- Rent, under lease agreements in force before February 15, 2020
- Utilities, for which service began before February 15, 2020
Laurie covers some of the details, the loan terms and conditions, that include…
- Eligible businesses
- Maximum loan amount up to $10 million
- All loans under this program will have the following identical features:
- Interest rate of 1.0%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
Currently, Heartland Bank is working with businesses and getting approvals in 48 hours. We encourage any and all self-employed to take a look at this program and re-evaluate your situation if you thought this is not for you.
One of the most common questions we hear is “How much of my loan will be forgiven?”. You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Some tips before starting the process…
- Look at the checklist provided on our website
- Work with your CPA or payroll
- Talk with your banker for more information about this program, as well as other options that may be available for your business
- Listen to our previous interview with Laurie
Featuring insights from individual contributors from all corners, nooks and crannies of the Columbus, Ohio region, Scott McComb, Chairman & CEO of Heartland Bank, has a goal to get to the why of our evolving and eclectic environment. Check back often for updates to the list of the latest interviews with some of the area’s most interesting individuals who are ‘Driving the CBus’!
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