TERRE HAUTE, Ind. (WTHI) - President Trump signed the Coronavirus stimulus package into law six days ago.
The $2 Trillion relief bill will send money straight to Americans. Providing small businesses with some relief is a big part of this bill, and many of you have asked us what all this entails.
News 10 spoke with Courtney Chipol. She is the Regional Director at the West Central Indiana Small Business Development Center. She shed some light with some details on the contents of this bill and how it can help local small businesses.
Chipol says her office is working with small businesses on the loan packages that are a part of this bill. She says many questions are revolving around the Payroll Protection Program.
It is meant to put Americans back or keep them at work. It’s a loan through your lender or a a participating small business lender and is meant specifically for payroll.
The Loan is at a fixed rate of .5% and is due within two years. It’s not meant to be a long term loan. Chipol says, it is the first stimulus package that is completely forgivable, however, you must retain your employees for that to happen.
“There’s a couple benefits outside of payroll but it is meant to keep your people working or bring them back up to the hours that they were or the pay that they were,” she said, “It will be forgiven for eight weeks.”
This stimulus package is meant to provide relief for businesses across the nation.
Small businesses may have a tougher time navigating through it all simply because they are smaller. Chipol spoke about what all Loan packages small businesses should be looking at.
She says there’s also Economic Injury Disaster loans through the SBA. If you apply, you can get Up to a $10,000 cash advance that doesn’t have to be paid back. It’s Meant to provide an influx of cash.
It can possibly cover payroll and things that are not covered in the payroll protection act.
Chipol says you are eligible to get both loans, however, you just can’t use them for same thing. She says while this is a difficult time, this is a great win for small business owners.
“It’s definitely going to help. We have a lot of businesses that have been able to stay open. This is going to help them actually be able to retain their employees,” Chipol concluded, “I think anytime that there’s something out there where our business owners aren’t going to have to pay it back, then that is a big benefit.”
News 10 also spoke with a local small business owner today. Frank Murphy owns Z tech and Big O Tires in Terre Haute. He says this stimulus package is a massive relief. He’s never had to lay someone off and he got sick thinking about it.
This is just one example of how this stimulus package can stop the bleeding for the time being, and help a lot of small businesses here locally.