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Help Your Clients Fund Their Benefits with The New Federal Paycheck Protection Program

Help Your Clients Fund Their Benefits with The New Federal Paycheck Protection Program

Help Your Clients Fund Their Benefits with The New Federal Paycheck Protection Program, Coronavirus (COVID-19) Updates,

No-Cost, Forgivable Government Loans

Good news. Your small business clients can continue to pay employees and fund their benefits through new no-cost, forgivable government loans.

The new loans are available through the Small Business Paycheck Protection Program, part of the CARES Act that became law on March 26, 2020. These loans are for employers with fewer than 500 employees. Depending on the employer’s use of the loan, up to 100% of the loan may be forgiven.

Depending on your business structure your business may too be eligible for Paycheck Protection Program loans.

Gain a high-level understanding of the new Paycheck Protection Program, ensure your small business clients are aware of the program and be positioned to provide resources. Claremont is here to help you with the information you need now.

Summary: Small Business Paycheck Protection Program

At its core, the Paycheck Protection Program provides federally-backed loans to small businesses that are forgiven as long as payroll costs are maintained equal to what they were before the Coronavirus impacted the business. Many financial experts are explaining that in essence, the loans become grants if the business maintains its payroll costs.

  • Funding amount. Payroll costs for up to 8 weeks plus an additional 25%, capped at $10 million.
  • Funds can be used for:
    • Payroll.
    • Employer health insurance premium contributions and other benefits costs.
    • Rent, mortgages, and utilities.
  • Fully Forgiven. Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities, provided the employer maintains their payroll at a level equal to what it was before the Coronavirus impacted the business.
  • Loan Payments/Interest. If the loan must be repaid, payments will be deferred for six months. The loan has a 0.50% fixed interest rate.
  • Collateral/Fees. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
  • All Small Business Eligible. Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. Businesses with more than 500 employees are eligible in certain industries.

You can find more details in the Resources section below.

Next Steps

  1. Start the conversation with your small business clients about how they can best continue providing benefits to employees.
  2. Advise your clients that benefits can be funded through the Paycheck Protection Program. Provide them with the resources below.
  3. Recommend to your clients that they talk through the available assistance with their financial and banking advisors.
  4. Let us know if there is any way we can assist. While we are not licensed to provide financial or tax advice, we may be able to help in other ways, including if you or your clients have questions about how to maintain employee benefits. Contact us at


The US Chamber of Commerce Paycheck Protection Program guide helps small businesses understand the Paycheck Protection Program and file for a loan.

The US Department of the Treasury  Paycheck Protection Program web page includes several helpful resources, including a Paycheck Protection Program Factsheet for Borrowers that provides even more details.

The US Small Business Administration (SBA) Paycheck Protection Program web page provides information on the program, who can apply, how to apply, loan details and forgiveness, and more.

Claremont Insurance Services and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.


Contact your Claremont team at 800.696.4543 or




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