April 14, 2020

Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Break Down | On Air with Cosmos FM

Our attorney, Lydia Vradi, was invited to go on air with Cosmos FM - 91.5 NY Hellenic Public Radio to discuss the various funding options for businesses that may be affected by COVID-19 and recent closures.

Click HERE to listen.


General Information:

  • 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
  • You can apply through any existing SBA 7(a) lender
  • Available through June 30, 2020

Who Can Apply:

  • Businesses existing on or before February 15, 2020
  • Businesses with no more than 500 employees (the number of employees would need to be added across all the business’s affiliates (i.e. the total number of employees of the business, any parent, any subsidiary, and any other business under common control must not exceed the applicable threshold)
  • The 500 employee threshold is determined on a per-location basis for certain businesses in the hospitality and food service industries

What Amount Can You Get:

  • Up to $10 million dollars, depending on your business' payroll costs 
  • The amount you qualify for is based on 2.5 times your average monthly payroll costs
  • You can use the loan proceeds for: payroll, rent, mortgage obligations, utilities and other debt obligations 

Loan Payments, Interest and Forgiveness:

  • Loan payments are deferred for the first six months 
  • The interest rate is 0.5% 
  • Eligible for loan forgiveness up to the principal amount for amounts spent over the next eight weeks after receiving the loan on certain qualifying expenses, provided that no employees are terminated and their pay is not significantly reduced
  • If you do, a lower amount of the loan will be forgiven. In other words, if you have qualifying expenses in excess of the loan amount, you would be eligible for forgiveness of the entire loan.
  • The amount eligible for forgiveness is subject to reduction if during the eight-week period the business:
    • (x) employs fewer full-time employees per month on average than it did during specified earlier periods or (y) reduces salary or wages by more than 25% for any employee earning less than $100,000 annually compared to their compensation in the most recent full quarter unless such reduction is eliminated no later than June 30, 2020
  • At least 75% of the forgiven amount must have been used for payroll


General Information:

  • Advance of up to $10,000 which does not have to be repaid
  • No loan forgiveness (other than the advance)
  • Advance funds will be made available within days of a successful application
  • Good option if you have a low payroll or need funds in excess of the amounts you qualify for under PPP
  • Applications are made directly to the SBA

Who Can Apply:

  • Businesses existing on or before January 1, 2020
  • Businesses with no more than 500 employees
  • Sole proprietorships, independent contractors and self-employed persons
  • Private non-profit organization or 501(c)(19) veterans organizations

What Amount Can You Get:

  • Up to $2,000,000
  • You can use the loan proceeds for payroll costs, meeting increased costs to obtain materials unavailable from the usual source, rent or mortgage payments, or repaying obligations that cannot be met as a result of losses in revenue
  • If an applicant has an EIDL loan and refinances it into PPP loan (e.g., to be eligible for forgiveness), any advance payment will be considered when determining loan forgiveness.

Loan Payments and Interest:

  • Maturity of up to 30 years
  • The interest rate is 3.75%


  • Principal, interest, and fees of current SBA 7(a), 504, and microloans for a period of six months are covered by the SBA.
  • Principal, interest, and fees of new SBA 7(a), 504, and microloans issued prior to September 27, 2020 are covered by the SBA


Direct Payment in the Form of Tax Rebate:

  • Single adults who make $75,000 or less and heads of households who make $112,500 or less will receive $1,200 
  • Married couples who make $150,000 or less will receive $2,400 
  • Every household will receive $500 for every child aged 16 or under
  • Income is determined by the adjusted gross income on the most recently filed tax return, either 2019 or 2018
  • Sliding scale reduction in their direct payment at a rate of $5 per every $100 of income over their applicable threshold

Enhanced Unemployment Benefits:

  • Expands unemployment insurance through the end of 2020
  • Expands eligibility
  • Individuals are eligible to receive their normal state-calculated benefit, plus an additional $600 per week regardless of state law earnings limitations

Additional Paid Sick Leave

Limited Mortgage Foreclosure & Eviction Moratorium

Temporary Suspension of Some Student Loan Payments

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