Coronavirus (COVID-19): Small Business Guidance & Loan Resources For Martial Arts And Fitness Owners
Friday, March 27th:
This week Congress passed a $2 trillion stimulus package to help small business owners during this time. What this means is that more than $350 billion in loans and payroll tax credits will go to help small businesses make it through this challenging time.
Guidelines for Martial Arts & Fitness Owners < 500 employees:
1. The personal requirement for SBA loans less than $25,000 is now waived, meaning, no collateral is required against the loan. The requirement to search for a privatized or venture-funded loan prior to applying for an SBA loan has been waived under this bill as well.
2. Interest rates cannot exceed 4%. The maximum amount that any one business can borrow is up to $10 million.
3. Part of the loan can be forgiven if it is related to payroll, rent or mortgage, and utility payments incurred in the eight weeks after you receive the loan and can be deducted from the loan amount and not repaid. Reducing your headcount during this time will decrease the amount forgiven. Likewise, adding a headcount will increase the amount forgiven.
4. This bill is also comprised of a payroll holiday tax. Owners have until 2022 to pay 2020 payroll taxes, however, businesses will need to pay 50% back by the end of 2021.