In the interest of sharing information from the pending Third
Stimulus Bill – Coronavirus Aid, Relief , and Economic Security (“CARES” Act),
we wanted to share some of the relevant developments that will affect the
Funeral and Cemetery industry. Part of this plan includes the Keeping
Workers Paid and Employment Act; this act will likely relevant to us all in
the Funeral and Cemetery Industry.
The plan would provide cash-flow assistance through 100
percent federally guaranteed loans to employers who maintain their payroll
during this emergency. If employers maintain their payroll, the loans would
be forgiven, which would help workers to remain employed and affected small
businesses and our economy to quickly snap-back after the crisis. This
proposal would be retroactive to March 1, 2020, to help bring workers who may
have already been laid off back onto payrolls.
Small Business Assistance
Small businesses with less than 500 employees
will be eligible to apply for the loans.
Loans would be immediately available through
existing Small Business Administration-certified lenders and SBA would be
required to streamline the process to bring additional lenders into the
The size of the loans would be tied to the average
monthly payroll; mortgage, rent, and utility payments; and other debt
obligations over the previous year. The maximum loan amount would be $10 million.
Conditional upon business retaining their
employees and payroll levels between March 1, 2020, through June 30, 2020, the
portion of the loan used to cover payroll and payments on pre-existing debt
would be forgiven.
Loan Guaranty Program
The bill would expand the allowable uses for the
existing 7(a) Small Business Administration loan program to permit payroll
support, including paid sick leave, supply chain disruptions, employee
salaries, mortgage payments, and other debt obligations to provide immediate
access to capital for affected small businesses.
The maximum loan amount for SBA Express loans
would be increased from $350,000 to $1 million (Essentially known as Working
Capital Loans). These loans provide borrowers with revolving lines of credit
for working capital purposes.
The regulations surrounding SBA lending will
also be greatly relaxed for both Borrowers and Lenders. Included in these provisions are the
Waivers of fees
Automatic deferments of payments for one year
No prepayment penalties
As the final bill and details emerge, we will provide insights
as appropriate. Please feel free to contact us if you have you any questions,
concerns or you require any assistance.