The Coronavirus Aid, Relief, and Economic Security (CARES) Act went into effect March 27, 2020 and there are several programs and initiatives for small business owners. Click here to download the U.S. Senate Committee on Small Business & Entrepreneurship Small Business Owner's Guide, which provides information and answers anticipated questions on the major provisions listed below:
Quick Cash Infusion & Loans
The Emergency Economic Injury Grant provides up to $10,000 to small businesses and non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL). You must apply for the EIDL and then request the advance, which does not have to be repaid. The advance can be used to keep employees on payroll, pay for sick leave, pay expenses including rent, and more. Grants are backdated to January 31, 2020 and those who have already applied for EIDLs are eligible to receive the grant.
Help with Debt Payments
The Small Business Debt Relief Program will provide immediate relief to small businesses with non-disaster loans. The SBA will cover all loan payments on SBA 7(a), 504, and microloans for 6 months. This relief will be available to new borrowers who take out loans for 6 months since March 27, 2020. Note: EIDLs (above) or PPP (below) loans are not eligible.
Capital to Retain Employees
The Paycheck Protection Program (PPP) provides loans to employers who maintain their payroll during the emergency. PPP features forgiveness for up to 8 weeks of payroll, no SBA fees, and at least 6 months of deferrals. Program is retroactive to Febuary 15, 2020 and is available through June 30, 2020. Click to this Lender Match website to find an eligible bank. Click here to compare EIDL versus PPP loans
Bridge Loan While Waiting
The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. If a small business has an urgent need for cash while waiting for a decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. Talk to you banker.
Report any suspected fraud to Office of Inspector General’s Hotline at 800-767-0385 or online click here
Free Counseling Resources available in Central Texas