CARES Act SBA Loan Calculator
- Employee salary, wages, and commissions
- State or local payroll tax payments
- Payment of cash tips
- Paid leave (including sick leave)
- Allowance for dismissal or separation
- Group insurance premiums
- Retirement benefit programs
- Compensation of an individual in excess of $100k (including sole proprietors and independent contractors)
- Federal employment taxes
- Compensation for employees outside of the U.S.
- Qualified paid leave covered under Section 7001 of the Families First Coronavirus Response Act
What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security Act, CARES Act, was signed into law on March 27, 2020. The CARES Act is intended to provide economic relief as a result of COVID-19.
The $2 trillion dollar relief package aims to have a positive impact on every corner of the economy, including:
- One-time cash payments to individuals
- Expanded unemployment benefits
- Tax credits to large and small corporations
- Emergency grants and forgivable loans to small businesses, sole proprietors, and independent contractors
- Additional funding to public health programs and institutions
How does the CARES Act benefit small businesses?
$375 billion—or more—of CARES Act funds will go towards small businesses. Companies with 500 or fewer employees are eligible to apply to multiple programs, some of which include:
CARES Act loan programs for small businesses
Inclusive in the $2 trillion dollar relief packages, $375 billion or more of the funds will go towards small businesses. Two programs were expanded or introduced as part of the CARES Act: first, the Paycheck Protection Program (PPP), and second, an expansion of the Economic Injury Disaster Loan program (EIDL).
Paycheck Protection Loans
The CARES Act provided nearly $350 billion towards the Paycheck Protection Program (PPP), a lending solution intended to keep as many employees on the payroll as possible.
Employers who take advantage of PPP loans and apply them towards allowable costs—such as compensation, benefits, and other business obligations—can qualify for up to 100% loan forgiveness.
|Paycheck Protection Program|
|Eligible Businesses||• Small businesses, tribal businesses, veterans organizations, and nonprofits with fewer than 500 employees
• Sole proprietors
• Independent contractors
• Self-employed individuals
|Max Borrowing Amount||The lesser of:
• $10 million OR
• 2.5x average monthly payroll costs
|Term Lengths||Up to 10 years|
|Interest Rates||Up to 4%|
|Forgiveness||Up to 100%*|
|Deferred Payments||Up to 12 months|
|Availability||Through Jun 30, 2020|
|Use||• Payroll and compensation
• Insurance premiums and healthcare benefits
• Mortgage interest costs
• Rent and utilities
• Interest on other debt obligations
*Forgiveness may be reduced dependent on reduction of number of employees or reduction in salaries.
How to apply for a PPP loan
Divvy has partnered with Cross River Bank to help small businesses quickly and efficiently complete PPP loan applications.
You can also apply through any of the 1800+ approved SBA 7(a) lenders. If your bank is not an SBA-approved lender, you can reach out to your local SBA office for direction.
SBA Economic Injury Disaster Loans and Grants
Economic Injury Disaster Loans (EIDLs) are provided by the US Small Business Administration (SBA) in order to cover economic losses as a result of regional or national disasters. SBA disaster loan or EIDL offerings were expanded as a result of the CARES Act, primarily in the form of cash grants.
Eligible businesses can receive up to $10,000 in financial aid to cover immediate operating costs. Unlike PPP and EIDL loans, these emergency grants do not require repayment. In addition, the CARES Act waives the requirement that you are unable to obtain credit elsewhere.
Businesses may qualify for an EIDL, emergency economic injury grant and a PPP loan, so it’s worth applying to all of them.
|SBA Economic Injury Disaster Loans|
|Eligible Businesses||Small businesses with 500 or fewer employees and private nonprofits|
|Max Borrowing Amount||$2,000,000|
|Term Lengths||Up to 30 years|
|Interest Rates||3.75% (2.75% for nonprofits)|
• Fixed debts
|SBA Emergency Economic Injury Grants|
|Eligible Businesses||Small businesses and private nonprofits who have been in operation since Jan 31, 2020|
|Max Borrowing Amount||$10,000|
|Availability||From Jan 31, 2020 – Dec 31, 2020|
|Deferred Payments||Does not need to be repaid|
How to apply for an Economic Injury Disaster Loan or Grant
The application process for emergency grants is the same as the process for EIDLs. Apply for your Economic Injury Disaster Loan through the SBA online portal and request an emergency grant of $10,000.
You can also contact your local SBA district office or call for over-the-phone assistance: 1-800-659-2955 (Non-peak hours are 7:00pm to 7:00am EDT).