John Payne
Legacy Benefits is happy to welcome contributions from John Payne of TJ Advisors.
John is a Founding Partner of both TJ Advisors and the accounting firm Lovelace Payne.
TJ Advisors LLC is a full service CPA firm founded in 2016 to provide assurance and advisory services in conjunction with tax services provided through our affiliated firm, Lovelace Payne LLC. Our commitment to quality, service and value are key elements in our early success. Our firm was founded on the principle that we must create more value than we charge in fees. We understand that timely communication with clients and delivery of our services in a timely manner is critical to our sustained success.
Economic Injury Disaster Loan expansion and the Payroll Protection Program
| Economic Injury Disaster Loan As expanded by the CARES Act | Payroll Protection Program |
| Who is eligible? | |
| • A business, ESOP, cooperative, or tribal small business concern with less than 500 employees
• Sole proprietors and independent contractors • Private nonprofit organizations • Small agricultural cooperatives AND • In operation at January 31, 2020 |
• Businesses, nonprofits organizations, veterans organizations, tribal business concern with less than 500 employees. (Certain industries may have more than
500 employees) • Sole proprietors, Independent contractors and eligible self-employed individuals AND • In operation at February 15, 2020 |
| When can I apply? | |
| Now, application review and approval can take up to 3 weeks. Apply at:
https://covid19relief.sba.gov/ No costs to apply and no obligation to take the loan, if accepted |
April 3, 2020 - Small business and sole proprietors
April 10, 2020 - Independent contractors and selfemployed individuals You must apply through and existing SBA lender. |
| What loan amount will my business be approved for? | |
| Maximum: $2 million
Loan amount to be calculated based on actual economic injury. An advance of up to $10,000 can be requested in the form of the Emergency EIDL Grant |
Maimum: $10 million
Likely calculation: 2.5x the average monthly payroll costs, measured over the 12 months preceding the loan origination date. |
| What are the terms of the loan? | |
| 3.75% interest rate for businesses, 2.75% interest rate for non-profits
Up to 30 years Loan repayments begin one year after loan origination date (interest is accrued during deferment) |
Guidance as of 3/31 by Treasury Dept. indicates interest rates of 0.5% and term of 2 years Loan repayments begin six months after the loan origination date (interest is accrued during deferment) |
| What about loan forgiveness? | |
| There is no loan forgiveness | Yes, up to 100% of the loan can be forgiven if funds are used appropriately |
| What can I use the loan funds for? | |
| May be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred
*Cannot be used to cover same expenses covered by PPP loan if obtained |
Payroll costs, group healthcare benefits, insurance premiums, and interest on mortgages or other debt, rent, and utility payments (Exclusions do apply) |
| Is a personal guarantee or collateral required? | |
| No personal guarantee is required for loans less than $200,000
Loans Over $25,000 require collateral SBA takes real estate as collateral when available SBA will not decline a loan for lack of collateral |
No personal guarantee or collateral required |
Information included is summarized and does not include all restrictions. Please contact us directly to help determine what is best for your business at this time.
16610 N. Dallas Parkway, Suite 2700, Dallas, Texas 75248 972-629-9164
1635 Rogers Road, Fort Worth, Texas 76107 817-984-8531
Contact us at wecare@lovelacepayne.com
