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April 9th, 2020
COVID-19 News & Updates
As you know, the Coronavirus is having an impact on business and society. Our thoughts and prayers are with all those impacted by the situation. We will be providing daily and weekly updates about COVID-19 to you. We hope that you find these interesting and informative.

PPP Loans for 1099 Independent Contractors

A Paycheck Protection Program (PPP) loan is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, with $349 billion designated for PPP loans. Independent contractors receiving 1099-MISC forms and self-employed individuals are eligible to apply for these potentially 100% forgivable loans beginning on April 10, 2020.

Where can I apply? 
Updated 4/9/20

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these PPP loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

Small businesses and sole proprietors began applying on April 3. Independent contractors and self-employed individuals can apply beginning on April 10.

The U.S. Small Business Administration (SBA) has a search tool to help you find a bank that offers PPP loans at: www.sba.gov/paycheckprotection/find

  • Am I ELIGIBLE?
  • What will lenders be LOOKING FOR?
  • How much can I BORROW?
  • Will this loan be FORGIVEN?

Message from 5Star Life Insurance

How we are responding

We are concerned not only about our customers’ health but also their financial well being. We understand that some of our customers may experience financial hardship and may find it difficult to continue making payments for their benefits as a result of consequences from the outbreak.  

In order to maintain coverage, we have implemented safeguards to keep policies in force that are aligned with market observations and guidance we are receiving from various state Department of Insurance communications to ensure that all policyholders can have the same peace of mind during this time.  

In addition to this email, we are likewise posting a notice on our website and on the employer administrative portal, encouraging members to reach out to our account management or customer service team for more details and information on these efforts. 

You will continue to hear from us as events unfold and while we adapt our services and protections accordingly. In the meantime, please take care of your health and that of your loved ones. We greatly value your partnership and place the greatest priority on being of assistance to you and your business during this time of need. 

* 5Star Life is currently rated A- (Excellent) with a Stable Outlook by A.M. Best (affirmed November 21, 2019). For the latest Best’s Credit Rating, access  www.ambest.com . 

Unemployment Benefits for Coronavirus Under the CARES Act

The CARES Act provides funding for states to waive any waiting week requirements for UI benefits during the COVID-19 pandemic and to provide an additional $600 per week to all individuals receiving UI benefits for weeks of unemployment ending before July 31, 2020.

The first week for which these benefits are available generally depends on when a particular state enters an agreement with the U.S. Department of Labor (DOL) to administer them. According to the DOL, all states have executed agreements as of March 29, 2020. 

On behalf of all of our team, please know that we are here for you and that we will continue to do everything we can to support you during this time. Please do not hesitate to let us know if there is anything you need! 

The Hatcher Agency

Sources:
Article 3: Carrier 5Star
Article 4: Unemployment Benefits for Coronavirus Under the CARES Act - Zywave