From Eric Hamelback CEO of the National HBPA:
Dear Affiliates,
In an effort to keep everyone informed, I want to make sure you are all aware to the two primary loans that I encourage you to look into with your financial advisors and apply as soon as possible in order to be considered as quickly as possible.
The first program is the Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed. This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed and is expect to have this program up and running by Friday April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day. The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses. This program is for any small business {Training operations are eligible as a small business} with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization {to be clear at this point 501(c)(6) organizations are not eligible, however efforts are being made to add language to permit inclusion} or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.
Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.
The second program in response to the Coronavirus (COVID-19) pandemic is for small business owners such as racehorse training operations and affiliates are eligible to apply for an Economic Injury Disaster Loan and receive an advance of up to $10,000 and this loan advance will not have to be repaid. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue.
To apply for a COVID-19 Economic Injury Disaster Loan, click here.
Recap of specific situations
- 501(c)(3) non-profit entity with payroll
May be eligible – PPL, EIDL (which can be converted into a PPL), employer tax credits and employer
tax deferrals (but only if does not participate in the PPL)
- 501 (c)(6) non-profit entity with payroll
May be eligible – EIDL, employer tax credits and employer tax deferrals
Probably not eligible – PPL
- Racehorse owner or racing stable with no payroll
May be eligible – EIDL
Not eligible – Employer tax credits, employer tax deferrals, PPL (since no payroll)
- Trainer who has payroll
May be eligible – PPL, EIDL (which can be converted into a PPL), employer tax credits
and employer tax deferrals (but only if does not participate in the PPL)
- Horse farm with payroll
May be eligible – PPL OR employer tax credits and employer tax deferrals
Not eligible- EIDL
- Bloodstock agent, consignor, manager of racing stable – sole proprietor or partnership without payroll
May be eligible – PPL based on self-employment income up to $100k/owner, EIDL
(which can be converted into a PPL), employer tax credits and employer tax deferrals
(but only if does not participate in the PPL) or self-employment income