Small business owners can apply for payroll protection through the CARES Act

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BATON ROUGE, Louisiana (WAFB) – The Baton Rouge Area Chamber (BRAC) has published five tips for small business owners in Louisiana.

BRAC TIPS

  1. If you closed because of the governor Stay at home order, but you don’t know if your company qualifies like essential, call the Louisiana Department of Economic Development to request at 833-457-0531 or email [email protected] Many businesses are allowed to stay open, but must do so after security protocols.
  2. Call your bank and ask for advice. Tell them what’s going on in your business and ask them if there is anything that can help you.
  3. Call your landlord or mortgage bank and ask if they offer temporary relief on rent owed or mortgage payments. Most banks and credit unions are right now, usually it is on a case-by-case basis that they consider when called upon. Do the same for the other creditors.
  4. Go to www.SBA.gov/disaster – The CARES law was adopted and promulgated on March 27. The package includes several provisions for small businesses, including the Paycheck Protection Program (PPP), forgivable loans of up to $ 10 million, with interest rates not exceeding 4%, made directly by banks local private companies and CDFIs. Loans are repayable if they are used on payroll and other defined operating expenses during a defined period. These provisions mean that companies that have had to take time off or lay off can rehire those employees and use the PPP to cover the payroll. The CARES Act also provides for SBA economic disaster loan advances of $ 10,000, which must be returned to applicants within three days and which can be turned into PPP loans. Finally, economic disaster loans (EIDL), available at interest rates of 3.75% for a maximum of $ 2 million, were made available before the passage of the CARES law. EIDLs can also be used on payroll and other defined operating expenses, but are not forgivable. It is important to note that while businesses can request and receive both a PPP and an EIDL, they cannot be used for the same purpose.
  5. If you’ve fired someone, reduced their hours, or put someone on leave for a while, please give them unemployment insurance information. Tell them to request information and a request from the Louisiana Workforce Board. You can also talk to your accountant and get financial help under the new tax credits passed by Congress.

Visit BRAC.org/Recovery for more.

PAYROLL PROTECTION PROGRAM

The Payroll Protection Program is designed to get money into struggling small businesses quickly, with less paperwork and fewer safeguards than existing SBA loan programs. Business groups say lenders are moving as fast as they can to make loans available. An overview of the Paycheck Protection Program can be found here. An information sheet for borrowers is available here.

As of April 3, small businesses and sole proprietorships can apply. As of April 10, independent contractors and self-employed workers can apply. Applicants are encouraged to apply as soon as possible as there is a funding cap. The application for the payroll protection program can be found here.

Governor John Bel Edwards is encouraging small business owners statewide to immediately seek help with payroll, rent, and other operational expenses through the Federal Paycheck Protection Program, if they don’t. haven’t already. The federal loan program is made available to them through their Louisiana-based financial institutions. At the same time, Governor Edwards said all banks in Louisiana should continue to access these federal dollars and be patient as the program progresses. The Paycheck Protection Program is administered by the Small Business Administration (SBA) and is designed to help small businesses meet their operational needs during this coronavirus pandemic.

“The deployment of the $ 349 billion through this program comes at a critical time for our state as we face this public health crisis, but it will not last long as businesses across the country will apply, too. ‘that’s why our small businesses shouldn’t wait until system issues are resolved before completing their claims, ”Governor Edwards said. “Time is running out and the time to move is now.”

MORE BRAC RESOURCES

Currently scheduled small business owner webinars include:

Registration and additional information available here.

UPCOMING WEBINARS

Small Business Webinar for Restaurants and Retail with Mayor-President Sharon Weston Broome

  • Learn how to navigate the SBA’s Economic Disaster Lending Program and other information in response to the COVID-19 pandemic.
  • April 7 from 2 p.m. to 3 p.m.
  • Sign up online : https://zoom.us/j/733346419
  • Register by phone: US: +1 (346) 248-7799, Webinar ID: 733 346 419

A webinar “Bringing clarity to PPP with the latest information. Explain the federal coronavirus assistance program and answer your questions ”, with panelists US Representative Garret Graves and Renée Bender will be hosted by the Baton Rouge Business Report

Small Business Webinar for Nonprofits, Independent Entrepreneurs and Sole Proprietors with Mayor-President Sharon Weston Broome

  • Learn how to navigate the SBA’s Economic Disaster Lending Program and other information in response to the COVID-19 pandemic.
  • April 9 from 3 p.m. to 4 p.m.
  • Sign up online : https://zoom.us/j/733346419
  • Register by phone: US: +1 (346) 248-7799, Webinar ID: 733 346 419

Visit the US Treasury website for more information on disaster relief for small businesses, and COVID-19 DDD Resource Page.

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Copyright 2020 WAFB. All rights reserved.


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