Zachary Ellis, Commercial Credit Group Inc., discusses the CARES Acts loan programs.
The EIDL purpose is to meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven).
Terms
Up to $2 million
3.75% for businesses
2.75% for non-profits
The Loan is NOT Forgivable, except for $1000 per employees up to $10K. Maturity is over 30 years and is deferred for one year.
For example, if a small business has 10 employees they are eligible for up to $2M, which $10K is forgivable. The small business would still be responsible to pay back $1,990,000 over 30 years.
P.P.P or Paycheck Protection program was an aid along with numerous other loans to stimulate the economy. $349 Billion was allotted for small business, and given the criteria followed, the loan would be completely forgiven. Factoring Invoices is an additional, immediate way to increase cash flow and drive future business. As a relationship-based lender, we provide multiple options to best fit your business. We’re also an independent lender, and venture into numerous markets, and business entities for complete customer attainment.
P.P.P Highlights
$349 Billion
- 1% interest Rate
- 2-year Loan
- 6 months Deferred Payments
Funds must be used for the following
- Payroll (Capped at $100k Annually)
- Rent
- Utilities
How To Complete Loan Documentation
- Document #941 – Payroll Statement
- SBA.GOV/Document/sba-form-paycheck-protection
- Complete necessary documentation, and visit your local business bank to partner in completion of funds
For example, if a company uses the Payroll Protection Program, they are eligible for $10M, which can be 100% Forgivable if used for employees, utilities and business investments. This PPP loan is administered through local banks and can be 100% forgivable.
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