How The $2 Trillion Coronavirus Stimulus Package Could Help Your Small Business
Business, COVID-19, Featured

By Jamie Marcario

Your small business will have access to $350 billion in forgivable loans, but it will have to meet certain requirements

Late Wednesday, March 25, 2020, the Senate approved a massive package designed to cushion the impact of the COVID-19 outbreak on Americans. The House plans to vote on the measure this Friday, and it is expected to pass. You can read the text of the bill here.

The $2-trillion bill would provide $1,200 direct payments to adults making up to $75,000 a year, offer $350 billion in small business loans, and create a $500-billion loan fund for states, cities, and various industries.

Small businesses across Florida have been hit hard and, in many cases, forced to shutter to comply with social-distancing and shelter-in-place orders for state and local officials. At Thrive Law, we’ve been in constant touch with many of you and know intimately your need for relief.

If you are a small business in need of relief, here are the key provisions in the bill designed to help you:
  • A $350 billion forgivable loan program created to reward small businesses that do not lay off employees
  • A 50% refundable payroll tax credit on worker wages to further encourage businesses to retain workers (including those with fewer than 500 employees)
  • Looser net operating loss-reduction rules that may allow businesses to offset more
  • A delay in employer-side payroll taxes for Social Security until 2021 and 2022
  • Expanded unemployment-insurance benefits for employees extended to sole proprietors and other self-employed workers if they meet certain eligibility requirements
  • Some of the $425 billion in funds appropriated for the Federal Reserve’s credit facilities will target small businesses
If you want to access the $350-billion loan program, how will you do it and how can you ensure the funds are “partially forgiven”?

While many of the logistical details have not been worked out, under the stimulus package, the Small Business Administration will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses with 500 or fewer employees.  These loans can be partially forgiven if debtor companies meet certain requirements. To be entitled to partial forgiveness, the small business must demonstrate that it is using the funds for employee payroll, rent, mortgage interest, and utilities. including retaining employees during the crisis.

If the business uses the loan funds for these purposes AND maintains the average size of its workforce, calculated at the time it receives the loan, the principal will be forgiven, and the company need only pay back the accrued interest.

Depending on how much a business paid its employees between January 1, and February 29 of this year, businesses can receive loans of up to $10 million at interest rates of up to 4%. The bill provides for expedited loan originations, and banks and other private lenders will administer them, which may speed up the process of getting the money to businesses who need them now.

The Thrive Law team is keeping up with emerging solutions for small businesses and doing our best to provide you with the latest information. We’ll keep providing you with more details about the coronavirus-aid bill and keep you posted on any changes when the House votes on Friday.

As a fellow small business, Thrive Law is in the boat with you. If you need guidance about COVID-19-related business and employment matters, call us: 1 (727) 300-1990 or email We’re here to help and sending you good thoughts.