We understand that these are uncertain times for most small businesses due to the ongoing coronavirus (COVID-19) pandemic. On March 27, 2020, the CARES Act was signed, offering two different funding options for small businesses impacted by the virus. These programs are the “COVID-19 Economic Injury Disaster Loan Program” (EIDL) and the Payroll Protection Program (PPP). Here’s what you need to know.
Coronavirus Business Loan Assistance
U.S. Businesses and Territories
For businesses in the United States, government aid is provided through the U.S. Small Business Association (SBA) Disaster Assistance program.
Economic Injury Disaster Loan Program
This program provides small businesses with working capital loans of up to $2 million that can help provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. For our existing clients, we are here to support you while completing your SBA loan application. Our team will walk you through the necessary steps and give you detailed information to expedite this process.
Payroll Protection Program
A loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. We are committed to keeping in contact with our clients with as much information that will help them get the funding they need to maintain their business in these uncertain times.
Government Funding Programs in Canada
The types of loans offered for businesses are:
- CEBA (Canada Emergency Business Account)
- CEWS 75% (Canada Emergency Wage Subsidy)
- CEWS 10% (Canada Emergency Wage Subsidy)
1. Canada Emergency Business Account
This will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Small businesses and not-for-profits should contact their financial institution to apply for these loans. There is not an online application available for this.
2. CEWS 75%
This will cover up to 75% of the first $58,700 earned by an employee for up to three months. Canadian businesses will be able to receive up to CAD $847 each week — about $607 USD — per employee to help supplement each employee’s wages. The funds would be sent to businesses within a span of two to five weeks. Businesses can receive funding for up to 12 weeks as long as they can prove they have suffered losses due to COVID-19.
This is a temporary three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).
Our Customer Pledge
Greenbox Capital stands united with our customers during this pandemic crisis and economic slowdown.
We will provide payment assistance to all customers showing a loss of revenue.
Please contact us at 305.952.3200, select option 1 to discuss payment assistance.