Help for Small Business: Have You Applied?

The stimulus package approved by Congress and signed by President Trump March 27 includes grants and loans for small and mid-sized businesses.


Payroll-relief loans of up to $10 million or 250 percent of average monthly payroll will be provided for salaries, paid leave, health benefits, mortgage interest, utilities, and rent.

Payroll-relief loans (for businesses with fewer than 500 employees) will be forgiven if businesses maintain their payroll or re-hire workers let go due to COVID-19.

The government (Small Business Administration, SBA) will issue further guidance (to lenders) in a week or so. OAAA will continue to keep you informed.


The massive stimulus bill signed March 27 includes $10 billion for emergency grants of $10,000 to help with payroll, sick leave and debt.

This stimulus package (“Phase III”) also includes $349 billion for small business “paycheck protection.”

These loans will be handled by SBA-approved lenders nationwide. This emergency effort is intended to help small businesses meet payroll and other expenses from February 15 through June 30, 2020.

Businesses with fewer than 500 employees are eligible.

Conditions (“strings attached”) included:

Eligible payroll costs do not include compensation of wages above $100,000.

Loan forgiveness is reduced if a firm reduces workforce: If a borrower reduces his or her workforce, the loan forgiveness amount will be reduced proportionally to the reduction in employees retained compared to the previous year.

Loan forgiveness is reduced if a firm reduces workforce wages: The amount forgiven will be reduced by the reduction in pay of any employee beyond 25 percent of prior year compensation.

Re-hiring of laid-off workers: Borrowers will not be penalized for having a reduced payroll at the beginning of the period if they re-hire workers that were previously laid off due to COVID-19.

Canceled debt will not be included as taxable income.

Loan amounts not forgiven will be carried forward as an ongoing loan with a maximum term of 10 years with a maximum interest rate of 4 percent.