CARES Act resources

At Piedmont Insurance & Business Group, we are committed to being a resource for small businesses. The government's Coronavirus Aid, Relief, and Economic Security (CARES) Act went into effect April 3, 2020. We hope to shed some light on this historic legislation and what it means for you as a small business owner.
The primary benefits of this bill for small businesses, include:

Emergency grants to cover immediate operating costs
Loan forgiveness for money borrowed to keep employees on payroll
Cover payments for expenses like rent or mortgages
Please discuss these options with your local bank representative to determine your eligibility.

Frequently Asked Questions

When can I apply?
Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program
What can I use the funds for?
Businesses can use funds from the Program loans to cover expenses including:

- Payroll costs, including compensation to employees; payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes

- Interest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal)

- Rent

- Utilities

However, the money cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act.
What do I need to apply?
You need to complete the application and to submit this with required documentation (including payroll) to an approved lender by June 30, 2020.
Can some of my loan be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

- Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.

- Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.

- Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020

You can request loan forgiveness by submitting a request to the lender srevicing the loan.
Where can I find more information? Who can I contact for help?
You can contact the U.S. Small Business Administration or contact your local lender (bank, financial institution)

Our insurance advisors are here for you.

We're ready to help you be protected in case the unexpected comes. Call us at 919-328-3999 for a FREE consultation!