The Celeri Journal #41: Next Steps

Written by Michael

On March 30, 2020

Global Markets Recap

For small business owners, this is a remarkable time. It’s challenging to keep your doors open and the lights on amid a global economic recession and once-in-a-lifetime health scare. But there is demonstrable hope. We’ve spent the weekend looking for information to share with you about the resources available in this challenging period. We hope you find this useful. Please, if you have any questions at all about the options currently on the local-, state-, federal-level, or through private lending channels, don’t hesitate to contact us. We will keep updating this information throughout the week and into April and May. Enjoy:

President Trump has signed the $2 trillion stimulus package, meaning the more than $350 billion in loans and payroll tax credits included to help small businesses can start getting distributed. Here’s what the bill includes and how it could impact your business:

  • Unlike other SBA loans, owners do not have to put up collateral or personally guarantee the loans. They also are not required to search for a loan elsewhere before applying for the SBA loan.
  • Interest rates cannot exceed 4% and the maximum loan amount is $10 million.
  • Part of the loan can be forgiven. Costs related to payroll, including health care, mortgage or rent and utility payments incurred in the eight weeks after you receive the loan can be deducted from the loan amount and not repaid. However, if you reduce your headcount in that time, that will also decrease the amount of loan forgiveness. Adding headcount will increase the amount forgiven.
  • Independent contractors’ wages can be included as employee payroll costs in the loan, according to the Chamber of Commerce.
  • The bill includes a payroll tax holiday. Owners have until 2022 to pay 2020 payroll taxes, but will need to pay 50% by the end of 2021.

Limited preview. Subscribe below.

You May Also Like…

Episode 25 with Leo Lu

Episode 25 with Leo Lu

On Episode 25, we welcome Leo Lu, Vice President on the Digital Partnerships team at BNY Mellon. Leo graduated from NYU Stern School of Business with a Bachelor’s degree in Finance. He has a background in fintech partnerships, venture investments, and has experience...

read more


Submit a Comment

Your email address will not be published. Required fields are marked *