COVID-19 Update for March 27, 2020 - Congress passes $2 trillion stimulus package - Will your business benefit?

Congress passes $2 trillion stimulus package - will it help you?

 

The stimulus package is offering small businesses S.B.A.-backed loans to pay for basic expenses. They would not have to repay portions that were spent on paying employees, a mortgage, rent or utilities. The banks lending the money would be reimbursed for those portions by the Treasury Department, which is receiving $377 billion to fund the program.


Under the new program, individual lenders will be able to use their own paperwork to process loans and can expect S.B.A. approval within two weeks. Banks will not disburse the loans until the S.B.A. assures them that each is fully guaranteed against default.

Unlike other S.B.A.-backed loans, business owners won’t have to provide personal guarantees or use all their available assets — from real estate to equipment — as collateral. There are no fees, and interest rates are capped at 4 percent.

The program comes with restrictions: Loans are limited to $10 million, to businesses with 500 employees or less. Businesses that have recently laid off workers would be required to repay a larger portion of their loans, and loans covering salaries of over $100,000 a year wouldn’t qualify for forgiveness.

Businesses would not have to repay loans covering up to eight weeks worth of payroll expenses. That means that once businesses receive their loans, a new clock will begin to tick: They’ll have to use the money within two months to avoid repaying it.

Here is a list of Pasadena Chamber member banks that may be processing these loans (too soon for details on application processes, etc.). If you are in need, please contact your bank representative or one of these Chamber member institutions:

FOR ASSISTANCE FROM LA COUNTY

Los Angeles County has put together a resource page for businesses with links to their programs and others. To see what they have to offer, visit https://lacountyhelpcenter.org/for-business-owners/


FOR THOSE NEEDING ACTIVITIES, ENTERTAINMENT OR FOOD, CHECK THESE:

NASA is putting together resources and activities with hands on material for all ages: https://science.nasa.gov/get-involved/nasaathome

Vroman's Bookstore has activities for kids (andadults, too) online.

Restaurants open for take-out and/or delivery. SOME MAY HAVE SPECIAL MENUS (PLEASE call before visiting as some may have closed since this was sent):