CARES Act & Other Business Assistance ProgramsComments Off on CARES Act & Other Business Assistance Programs
As our nation navigates through the COVID-19 crisis, businesses are beginning to feel the effects first hand. As a means of financial relief, the government has passed the Coronavirus Aid, Relief, and economic Security (CARES) Act.
The CARES Act will provide $377 billion to help prevent workers from losing their jobs and small businesses from closing their doors due to economic losses caused by the COVID-19 pandemic. Download the printable sheet HERE.
Paycheck Protection Program:
The bill provides 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to small employers who maintain their payroll during this emergency.
- If the employer maintains its payroll, then the portion of the loan used to cover payroll costs, interest on mortgage on obligations, rent, and utilities would be forgiven.
- The bill provides this support to small employers 500 employees or fewer, self-employed individuals and gig economy individuals, nonprofits and 501(c)(3) organizations and 50(c)(9) veteran organizations.
- Loans will be available immediately through more than 800 SBA-certified lenders, including banks, credit unions, and other financial institutions.
- The size of the loans may equal 250 percent of an employer’s average monthly payroll. The maximum loan amount is $10 million.
View Paycheck Protection Program (PPP) FAQ
Small Business Debt Relief:
The bill would require the SBA to pay all principal, interest, and fees on all existing SBA loan products, including 7(a), Community Advantage, 504, and Microloan programs, for six months to provide relief to small businesses negatively affected.
The bill provides $265 million for grants to SBA resource partners, including Small Business Development Centers and Women’s Business Centers offering assistance those small businesses impacted by the coronavirus.
Emergency Economic Injury Disaster Loan (EIDL) Grants:
The bill expands eligibility for companies suffering economic harm due to COVID-19. The bill allows businesses to apply for EIDL expedited access to capital through emergency grants – an advance of $10,000 within 3 days to maintain payroll, provide paid sick leave, and service other debt obligations. See below for detailed information and links to more information.
View EIDL Program FAQ
View EIDL Program Training Sessions
To learn more about this grant CLICK HERE.
Information provided by The Partnership. Visit The Partnership website for additional information.