Updates Regarding EIDL & PPP Loans

To our small business owner clients, we wanted to be sure to give you the latest information we have received regarding the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP).

EIDL Reopens to All Businesses

Small Business Association reopens EIDL to all businesses.

The SBA has reopened the Economic Injury Disaster Loan (EIDL) to all eligible small businesses. If you are interested, do not delay — we do not know when the application will close again.

The EIDL provides low-interest, long-term loans to small businesses that can be used for working capital, payroll, accounts payable, and short-term debts. This program also provides up to $10,000 advance ($1,000 per employee, up to $10,000) that does not need to be paid back. Click here for more details.

If you have already applied and have an application # that starts with 3, you do not need to reapply.

Paycheck Protection Program Changes

There have been some important changes to the Paycheck Protection Program (PPP).

Highlights of these changes include:

  • Requires at least 60% of the funds be spent on payroll
  • Extends period to 24 weeks of loan issue or through Dec. 31, whichever comes first
  • Defers repayment at least 10 months
  • Extends loan maturity period to 5 years
  • Extends period to restore staff or salary levels
  • Provides clarification if you are unable to rehire staff

Click here for more details.

In addition, the SBA & Treasury released an updated forgiveness application based on these changes. Applications can be found here:

EZ Forgiveness Application: For those who fit in the below categories:

  • Self-employed with no employees; OR
  • Those who did not reduce the wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Those who have experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the wages of employees by more than 25%

Full Forgiveness Application: For all others who don’t apply to the categories above.

Deadline: 6/30/20. Contact a participating lender.

Updates Regarding Unemployment

The Bureau of Unemployment Compensation

Maine Dept. of Labor will begin taking claims for the Pandemic Unemployment Assistance program on May 1st. The program covers those who are self-employed, or otherwise ineligible for traditional state unemployment benefits. Please do not apply until 8 a.m. on May 1, when the new application becomes available. More information can be found on the State of Maine’s PUA webpage: www.maine.gov/unemployment/pua.

Rick also listened in on a webinar today, regarding PPP loans and Unemployment and learned the following…

  • If you receive a PPP loan you can still apply for unemployment benefits to cover the period from 2/15/20 until you received your PPP loan money.
  • If your tax return showed zero net income from your business you can apply for unemployment and get a minimum of $172/week PLUS the extra $600/week ($772 total per week)