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Act Now: Coronavirus Emergency Loans

How the Stimulus Program Can Help Your Equine Business

How can trainers, barns and other equine-related businesses get financial help in these challenging times? Equidae Insurance has been sorting through the directives and available information to help guide our clients through the CARES Act. And we know that there are lots of small equine businesses with questions how this stimulus package can help their own venture.

The Paycheck Protection Program, enacted as part of the CARES Act, authorizes up to $349 billion dollars in forgivable loans in the next 90 days. (As a reference, the SBA authorized only $29 billion in all of 2019.) The PPP is implemented by the Small Business Administration with support from the Department of the Treasury.

What do you really need to know to be a successful borrower under the PPP?
PPP provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Fully Forgiven
Funds are provided in the form of loans that will be fully forgiven (at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Keeping Employees on the Payroll—or Rehiring Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.

When to Apply
Starting April 3, 2020, small businesses and sole proprietorships can apply. Independent contractors and self-employed individuals can apply starting April 10, 2020. We encourage you to apply as quickly as you can because there is a funding cap.

How to Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, or Farm Credit System institution that is participating. All loans will have the same terms regardless of lender or borrower, and you should consult with your local lender as to whether it is taking part. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.

Talk to your tax preparer as well, and he/she can help guide you through the lending process.

A great reference site which details information about the PPP is https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf

For any questions regarding this blog, please contact us direct at: Equidae Insurance, Inc. 608 Virginia Street East, Suite 302 Charleston, WV 25301 p. (304) 346-1198 f. (304) 345-3535

Stacey Halloran, Agent
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