Contractors can get grant-like forgivable loans under coronavirus relief law | Dump Truck Company
The third coronavirus stimulus package passed by Congress and signed by President Trump would allow dump trucks charlotte nc to apply for loans that would be forgivable if the money is used to maintain payrolls and other expenses.
That makes it more of a grant program than a loan program, says the Associated General Contractors.
According to AGC, a contractor could get a loan through the Small Business Administration’s Paycheck Protection Program of up to 2.5 times its average monthly payroll or $10 million, whichever is less.
The amount of the money used for payroll, mortgage interest, rent and utilities would not have to be paid back between February 15 and June 30, according to the Associated Equipment Distributors. That loan forgiveness, however, is reduced by a ratio for any layoffs.
The qualification process for the SBA program has also been made easier. It only requires that the business has been in operation by February 15 and has employees it pays payroll taxes for, AGC reports. The loans can be applied for at SBA-certified lenders around the country.
The max interest rates on the loans are 4 percent and payments can be deferred for at least six months, AGC says. All fees for the borrower and lender are waived, and collateral requirements are waived.
The stimulus package, which totals $2 trillion and was signed March 27, calls for a variety of other provisions that would benefit dump trucks charlotte nc and other small businesses with fewer than 500 employees.