At Husch Blackwell we understand the financial hardships our healthcare industry clients face in the midst of the COVID-19 pandemic. While you have no doubt heard about the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act signed into law on Friday, March 27, 2020, we want to make sure you are aware of the estimated $377 billion in Small Business Administration (“SBA”) relief that may be available to you as an eligible small business. We encourage you to act immediately so that you may secure funding as quickly as possible.
The SBA will make loans available to businesses that employ fewer than 500 people (and in certain instances a larger number of employees) through the new Paycheck Protection Program (“PPP”) and the existing Economic Injury Disaster Loan (“EIDL”) program. A full explanation of EIDL and PPP can be found at our website. In regard to PPP, eligible enterprises may obtain low interest and, in some circumstances, forgivable loans of up to $10 million. The loan amount is calculated by reference to payroll costs incurred by the business and roughly equal to 2.5 times the company’s average monthly payroll costs.
Here is a list of SBA lenders in Wisconsin. Husch Blackwell has existing relationships with many of these lenders and is already helping a number of our healthcare clients take advantage of these SBA programs. If you are considering an SBA loan it is important for you to contact a local SBA lender now, even if you may be working through some of the nuances regarding eligibility and loan terms. We anticipate that SBA lenders may become overwhelmed with applications, which could lead to a delay in receipt of the funding for which you may be eligible.
Husch Blackwell’s Coronavirus (COVID-19) Toolkit offers additional insight into SBA Relief Available to Coronavirus-Impacted Small Businesses.
Should you have any questions about the CARES Act, SBA programs, or any other COVID-19 related issues, please do not hesitate to contact your Husch Blackwell attorney. For a further explanation of the CARES Act, the U.S. Senate Committee on Small Business & Entrepreneurship has provided a useful guide.