Because the COVID-19 crisis is significantly impacting many focused ultrasound companies, we want to make you aware of some important resources that may help.
The most recent legislation passed by the US Congress in response to the current pandemic – the Coronavirus Aid, Relief, and Economic Security (CARES) Act – provides more than $350 billion to prevent workers from losing their jobs and insulates small businesses against economic losses caused by the COVID-19 crisis. Focused ultrasound companies should be eligible to take advantage of a key portion of this package, the $349 billion Paycheck Protection Loan Program*.
This program offers small businesses forgivable loans up to $10 million, calculated based on a payroll formula that essentially equals 2.5x the average total monthly payroll cost incurred in the one-year period before the loan is made. The loans must be used for the following purposes:
- payroll costs
- costs related to group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
- employee salaries, commissions, or similar compensations
- mortgage interest payments (but not any prepayment of or payment of principal on a mortgage obligation)
- interest on any other debt obligations that were incurred before the Covered Period
Who is eligible?
Eligible business are those that qualify as a small business concern according to SBA with no more than 500 employees. The business must also:
- be organized for profit,
- with a place of business located in the United States,
- operate primarily within the United States or which makes a significant contribution to the US economy through payment of taxes or use of American products, materials, or labor.
Please refer to the SBA rules on how to calculate employees.
Independent contractors – or those who file under 1099 – are also eligible to apply for these loans on their own.
How do I apply for a Paycheck Protection Program loan?
Fill out an application for borrowers by June 30, 2020. Funds are awarded on a first-come, first-served basis.
These loans are distributed by individual banks, so contact your local bank to discuss the loan. After the 8-week loan term is up, you will then work with your bank to ask for loan forgiveness and prove that you met the terms of loan forgiveness (ex: using funds for payroll, rent, etc.).
More information on the Paycheck Protection Program and other loan resources are available here.
The Foundation will continue to inform you about other resources available to you as we move through this difficult time. See our COVID-19 Resources page.
*Congress is expected to approve an additional $250 billion funding for the program soon.