To alleviate the economic impact of the coronavirus on both individuals and businesses, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27. The legislation provides economic assistance to small businesses which also includes loans for utilies such as telephone and internet access.
Paycheck Protection Act
Who is eligible for a Paycheck Protection loan?
• Businesses and 501(c)(3)s with less than 500 employees are eligible for this new loan.
• Sole proprietors, independent contractors, and self-employed individuals may also be eligible.
Is there a cap on the loan amount?
The maximum loan amount will be the lesser of $10 million or 2.5 times the average monthly payroll based on the prior year's payroll.
What expenses are eligible to be paid from the loan?
• Payroll costs, including costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums; and employee salaries, commissions, or similar compensations
• Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation)
• Rent (including rent under a lease agreement) and Utilities (incl. telephone, or internet access)
• Interest on any other debt obligations that were incurred before February 15, 2020
More details can be found through the SBA: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options