By now, you are aware that Congress recently passed the $2 Trillion CARES Act to aid individuals and companies during this time of uncertainty and struggle. As part of the legislation, $349 billion of loan guarantees have been dedicated to supporting small businesses. Here are some key facts from the SBA*:

• The part of the CARES Act that supports small businesses, The Paycheck Protection Program, 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
• Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, 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
• 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
• Small businesses with 500 or fewer employees – including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors – are eligible. Businesses with more than 500 employees are eligible in certain industries
• As of April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap. You can find the application here
• A list of participating lenders as well as additional information and full terms can be found at www.sba.gov. All loans will have the same terms regardless of lender or borrower
  

The Role of Dedicated Equipment and Technology Financing

We’re all in this together.

In the coming days, LEAF will offer updates and key information to help you get through this environment and ultimately move forward. And as you evaluate lending needs to complement your access to these government-sponsored programs, LEAF can assist with easy access to flexible equipment and technology financing.