It’s an especially difficult time to be in the energy industry. Amidst this COVID-19 crisis, we have witnessed a historical slide in crude oil prices. It is requiring those in the industry to consider all available avenues to sustain their business for both now, and for the future. The Paycheck Protection Loan provision in the proposed Coronavirus Aid, Relief, and Economic Security Act (CARES Act) may offer much needed financial assistance.
The Paycheck Protection Loan provision of the CARES Act provides for the following:
- 100% Federal government guaranteed loan, with interest not to exceed 4% payable over 10 years (no borrower guarantees, no collateral, no fees)
- Loan amount is based on previous years’ payroll (including limits per employee), with a maximum loan of $10,000,000
- Potential loan forgiveness when payroll maintained during COVID-19 national emergency period
To qualify for the Paycheck Protection Loan, your business must have less than 500 employees. There are no other limits (revenue, etc).