Key Takeaways:
[0:18] Today’s episode of Franchise Euphoria is brought to you by IndyFranchiseLaw.com, a leading resource in the franchise space. Head over to IndyFranchiseLaw.com learn more!
[0:59] Josh is back with another bonus episode regarding the $2 trillion bill passed by congress last week that aims to aid individuals, public health organizations, state and local governments, big corporations, small businesses, and some educational institutions.
[1:46] For this episode, Josh is going to focus on the impact of this piece of legislation on individuals and small businesses.
[2:29] Josh provides a breakdown of the benefits to be provided to individuals and married couples based on their income.
[5:57] If you qualify for the government payout, Josh recommends touching base with your accountant to get their advice and input on what you can expect.
[6:20] For small businesses, there are two parts to this program: the SBA Disaster Loan and the Paycheck Protection Program.
[7:44] Josh recommends that the first step you should take as a small business owner during this time is to visit www.SBA.gov.
[8:49] The Paycheck Protection Program aims to keep small businesses (500 employees and under) open during this time where the economy has been forced shut due to COVID-19.
[9:42] One of the highlights of the Paycheck Protection Program includes being able to qualify up to $10 million through an application process. The purpose being to allow business owners to be able to continue paying their employees (including yourself) and other business expenses throughout this health crisis.
[12:19] If you use the money you receive for things outlined within the very broad circumstances in the terms of the program, then you get 100% forgiveness on that loan.
[15:02] If you do not use the money for its intended purposes, you will pay that amount back with a maximum of 4% interest.
[16:08] Additionally, if you take the money and you still end up closing your business or have employees terminated during that time period, you will not be held liable for paying the money back.
[17:04] When comparing the Paycheck Protection Program to the SBA Disaster Loans, the latter of which requires collateral and does not have fixed interest capping at 4%.
[18:03] If you are a business who has already had to take an SBA Disaster Loan in this situation, you can roll your loan into the Paycheck Protection Program. Josh recommends contacting your accountant if this is something you want to pursue.
[19:36] Nothing mentioned in this episode was intended to be taken as legal advice, and Josh recommends getting in touch with your own lawyer to discuss your options regarding this program.
[20:21] Thanks for listening, and please, reach out to Josh anytime through email at josh@indyfranchiselaw.com. If you enjoyed this interview, please leave us a review on iTunes.
Mentioned in This Episode:
