To be fully forgiven, you must keep all your employees. In addition, 75% of the loan must be used on the payroll. If you are not able to keep all employees, you must repay part of the loan. These working capital loans can be used for the reward, payslip, debts and other invoices that could have been paid if the disaster had not occurred. Loans are not intended to replace the shortfall, the shortfall, or the enlargement savings. Loans are available up to $50,000, based on the company`s current revenues. Loan contracts are structured as follows: If you have already laid off employees, make sure they return before accepting the full credit. To be fully assigned, you must keep the full payslip. Workers can receive new unemployment benefits that increase wages. Sutton says the abandonment of the personal guarantee for loans under $200,000 should be reflected in the contract.
“If the government were at the top, they would change the document,” Sutton says. It recommends that borrowers add their own type of endorsement, which states that since the loan is less than $200,000, there is no personal guarantee. (Caveat: This does not seem possible to do with the platform that the SBA uses.) ” (1) all personal guarantee provisions on advances and loans of at least $200,000 during the period covered for all applicants; …” Given the uncertainty of the current business environment, it is not surprising that borrowers are concerned about what happens if they cannot repay their EIDL SBA loans. The FDI loan agreement states: “With respect to a loan under Section 7 (b) (2) of the Small Business Act (15 U.S.C 636(b) (2)) in response to Covid-19 during the period covered, Administrator waives – To help borrowers, economic disruptions due to COYID-19, the U.S. Small Business Administration (SBA) grants its existing borrowers a reprieve from certain related loans until December 31 SBA (disaster loans and commercial loans and 504 bonds purchased in SBA) , 2020. For existing SBA borrowers with SBA-supported loans that were as of March 1, 2020 under the status of “regular maintenance,” the SBA proposes an automatic deferral of capital and interest. For more information, see the SBA procedure release. None of this should suggest that borrowers avoid these credits. In today`s credit environment, where it is difficult to obtain low-cost unsecured loans, these loans will undoubtedly save some businesses. But remember that the SBA is doing what it can to protect the lender — in this case, it is the U.S.
government. Borrowers who have received loans from the FEDA are afraid of seemingly heavy provisions… [I]t] on them. “Without the SBA`s prior written agreement, the borrower will not distribute the borrower`s assets or give preferential treatment, directly or indirectly, to an advance by a loan, gift, bonus or any other way to an owner or partner or employee or to a company controlled directly or indirectly, related to the borrower or another business.” “I have received your request and asked for clarification on certain conditions of the authorization and the credit agreement.