Resources to Navigate the COVID-19 Pandemic

Last updated 4/4/2020


Bank of America says 85,000 small businesses have asked for $22.2 billion in loans since 9 a.m. Read more


By Friday morning, a number of banks were either not accepting loans yet, or having issues with their loan application pages. Read more


White House: "At the same time, we’re also racing to get relief to American workers and small businesses, as you know.  I want to remind small-business owners across America that the Paycheck Protection Program is launching tomorrow." Read more

PPP bulletin

In these times of widespread business shutdown, business owners are facing short-term cash flow challenges as supply chains and services are being disrupted. These challenges are evident across almost every sector, in one-person enterprises as well as multinational corporations. We must face this challenge as a nation and as an economy, and a disruption of this scale should, and is, being addressed by federal and local government. Below is a list of resources we would like to bring to your attention, as we work collaboratively to get through these times of uncertainty:


Federal Government Relief Programs

Senate passed the Economic Relief Plan for Individuals and Businesses (CARES Act). Below are the main benefits for business owners:

  1. Paycheck Protection Program (PPP): $349 billion allocated to help small businesses (<500 employees) impacted by COVID-19 to make payroll and cover other expenses from February 15 to June 30. Small businesses may take out loans up to $10 million, limited to a formula tied to payroll costs, and can cover employees making up to $100K per year. Loans may be forgiven if a firm uses the loan for payroll, interest payments on mortgages, rent, and utilities and would be reduced proportionally by any reduction in employees retained. Applications are made through your bank and not on the SBA website. More on this program later in this document.

  2. Employee Retention Credit: Employers are eligible for a 50% refundable payroll tax credit on wages paid up to $10,000 per employee during the crisis. The credit would be available to employers whose businesses were disrupted due to virus shutdowns and those that had a decrease in gross receipts of 50% or more when compared to the same quarter last year. The credit can be claimed for employees who are retained but not currently working due to the crisis for firms with more than 100 employees, and for all employee wages for firms with 100 or fewer employees.

  3. Employer-side Social Security payroll tax payments may be delayed until January 1, 2021.

  4. Economic Stabilization and Assistance to Severely Distressed Sectors: $454 billion in emergency lending to businesses, states, and cities. This includes $25 billion in lending for airlines, $4 billion in lending for air cargo firms, and $17 billion in lending for firms deemed critical to U.S. national security. Firms taking loans must not engage in stock buybacks for the duration of the loan plus one year and must retain at least 90 percent of its employment level as of March 24, 2020. Loans also come with terms limiting employee compensation and severance pay for firms taking loans. Emergency lending will be overseen by a Congressional Oversight Commission and a Special Inspector General.

    More information can be found Here and Here


State-wide initiatives

Check regularly with your local Chamber of Commerce - Here for state-specific initiatives. Also, confer with your property manager for any state-specific programs that may become available over time. Several states are beginning to offer guidance and assistance for businesses impacted by COVID-19. Link to your local and state government websites.


Paycheck Protection Program (the CARES act SBA loan)

The CARES Act amends the Small Business Act to create a new Business Loan Program category. For the period from February 15, 2020 to June 30, 2020, the law allows the Small Business Administration to provide 100% federally-backed loans up to a maximum amount to eligible businesses to help pay operational costs like payroll, rent, health benefits, insurance premiums, utilities. The US Treasury has issued an official PPP Fact Sheet.


  • Small businesses as defined by SBA size standards (< 500 employees, but up to 1,500 employees depending on the sector and certain sectors are based on revenue).

  • Businesses in the Accommodation and Food Services Sector (NAICS Code 72) are eligible with up to 500 employees at each location.

  • Non-profits with fewer than 500 employees who are 501(c)3s and do not receive Medicaid funding.

  • Sole proprietors, the self-employed, and independent contractors.


Maximum Loan:

Generally, monthly payroll costs for 2.5 months, not to exceed $10 million. Payroll costs exclude compensation paid to individuals, including the self-employed, in excess of $100,000 a year.

Loan Forgiveness:

The borrower may have a portion of their loan forgiven in the amount equal to their payroll costs, interest payments on mortgages, rent payments, and utility payments between February 15 and June 30, 2020. Loan forgiveness will be reduced if the borrower reduces employment by a ratio similar to their reduction in employment or if borrower reduces salaries and wages by more than 25%.



Payroll Protection Program (PPP) loans are live with most banks, but processing time appears to be long. As opposed to PPP, which are applied for in your bank, Economic Injury Disaster Loans (EIDL) are available immediately by applying directly on the SBA website: here
One option would be to apply for an EIDL loan immediately to cover the expenses a business has now. Later, when the PPP loans are accessible, current concensus is that business owners would be able to refinance and convert their EIDL loan into a PPP loan.


We encourage business owners to educate themselves about their options. EIDL loans are available on the SBA website, and the PPP loan are going live during April. We are expecting the lenders to be overwhelmed with applications and processing time may be longer than usual.

  • Click here for an application, overview of the program and list of participating SBA lenders.

  • Click here for a program overview by the U.S. Chamber of Commerce.

The Small Business Association (SBA) has created a comprehensive Coronavirus page with all of its resources in one place.


General recommendations for owners and operators

  • Upgrade cleaning and hygiene practices. Increase cleaning focus on disinfecting areas most susceptible to the spread of viral germs (e.g. children's play areas, public restrooms, door handles, escalator handrails, food court tables, etc.)

  • Install and maintain alcohol-based hand sanitizer dispensers in locations where the spread of germs is likely and normal soap and water hand washing stations are not readily available.

  • Establish good communication with local health departments and follow local public directives.

  • Display CDC public service announcements at entrances and throughout the property.

  • Distribute communications to tenants outlining basic CDC recommendations or local government instructions.

  • Encourage employees who are sick to stay home.

The Federal Government passed a large relief package, valued at over $2 trillion. The Federal Reserve is taking unprecedented steps to assure liquidity in credit markets. State and County officials are working relentlessly to provide aid to businesses and ensure public health. Monitor the situation as it evolves, know your options, and please reach out if you have any questions.

This letter is issued for informational purposes only. It is not intended to be and should not be relied upon as legal or financial advice, and it should not be considered exhaustive or comprehensive. Faropoint is not making any representation or warranty, express or implied, as to the accuracy or completeness of this information, and Faropoint will not have any liability, neither legally nor financially, for any loss (direct or indirect) caused by the understanding or by the use of this page or its content. Any reference to any relief program or a loan or otherwise does not constitute an endorsement or a recommendation or a favoring by Faropoint.

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