Coronavirus Economic Stimulus Package – News Alert from InstaPay
As we see a decline in trucking miles particularly in the northeast and from port cities due to the coronavirus, we understand this may impact your business.
In answer, the federal government has passed the CARES (Coronavirus Aid, Relief and Economic Stimulus) package. There are two plans for small businesses. We will discuss the Payroll Protection Program (§1102) which includes support for sole proprietors and independent contractors. While the plans are still changing a bit, this is what we believe is going to be available as soon as April 3, 2020.
What you can receive
- An immediate loan of up to 2.5 times your average monthly income
- Potential forgiveness of all or some of the loan -up to 8 weeks of certain expenses (payroll for sure) – that means you won’t have to pay it back
- Loans have a low interest rate 4% - this is the LAW
- The loans are all deferred so no payments until next year
What you should know
- These loans will only be available through financial institutions (and possibly the Small Business Administration) – do NOT apply except directly with your bank, or another bank or credit union
- There is no fee to apply
- There is no credit check
- There is no personal guarantee required
The FBI has warned of many potential scams because of the Coronavirus. If you someone reaches out to you offering a Payroll Protection Program or an Economic Injury loan, it is probably FRAUD.
We at InstaPay know how important all of you have been and continue to be during this crisis. We appreciate your hard work, and thank you for the opportunity to be your partner. Please don’t fall for a scam. You can email us at firstname.lastname@example.org with your questions. We will review them daily and summarize in a post the next day.
Disclaimer: The comments herein are not meant to be an offer, nor financial advice.