COVID-19 RELIEF FOR BUSINESSES
MAIN STREET RECOVERY GRANTS
PROVIDED BY LOUISIANA TREASURY DEPT
Act 311 set aside $300 million for a small business grant program. Businesses can apply for up to $15,000 to cover eligible expenses. We are in the process of setting up an application system.
ELIGIBILITY REQUIREMENTS
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Were domiciled in Louisiana as of March 1, 2020
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Suffered an interruption of business
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At least 50% owned by one or more Louisiana residents
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Filed Louisiana taxes in 2018 or 2019 or will file taxes in 2020.
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Had no more than 50 full-time employees as of March 1, 2020
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Have customers or employees visit a physical location
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Are not part of a bigger business with more than 50 full-time workers
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Does not exist for the purpose of advancing partisan political activity and does not directly lobby federal or state officials
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Does not derive income from passive investments without active participation in business operations
PAYROLL PROTECTION PROGRAM
PROVIDED BY SMALL BUSINESS ADMINISTRATION
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).
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PPP loans have an interest rate of 1%.
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Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
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Loan payments will be deferred for six months.
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No collateral or personal guarantees are required.
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Neither the government nor lenders will charge small businesses any fees.
