The new economic stimulus plan just passed by lawmakers in Washington includes $350 billion for loans and loan guarantees for small businesses that qualify. But what will this mean for you?
“The government will pay the wages of some workers who remain on their companies’ payrolls,” says Rock and Hammer Founder Henry Obadiah, “and it will sustain other workers who have lost their jobs with checks that are as large as what they were earning before they were laid off. It will help some of the country’s largest corporations stave off bankruptcy. ” But there will also be some strings, he says. “Loans to small businesses with 500 employees or fewer will be limited to $10 million, and loans to cover salaries of over $100,000 won’t qualify for forgiveness. Additionally, business must demonstrate that they have not recently laid off employees, or a smaller amount of the loan would be subject to forgiveness.”
If your company is much smaller, or you’re an individual wanting to see what’s there for you, Obadiah recommends working with your tax accountant to figure things out without delay.
“This new stimulus package will be hard for a lot of folks to unravel,” Obadiah says, “and we expect to see a lot of our clients and others tap our ties to clarity and solid advice.”
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