Topics: Coronavirus (COVID-19)
The federal government just passed the Coronavirus Aid, Relief and Economic Security (CARES) Act , a sweeping relief package assisting small businesses with loans and grants. The U.S. Chamber of Commerce has compiled information on how the CARES Act will assist small businesses. The CARES Act offers offers a variety of programs and initiatives designed to assist small businesses during these uncertain times, including Paycheck Protection Program (PPP) Loans, Small Business Debt Relief Program, Economic Injury Disaster Loans (EIDL) and Emergency Economic Injury Grants (EEIG), free counseling for small business owners and low-cost training regarding COVID-19. Unfortunately, as of April 16, 2020, the SBA announced that the initial $349 billion Congress allocated for PPP loans had been depleted. However, Congress passed a new bill on April 24, providing an additional $310 billion in relief for small businesses with $60 billion set aside for small lenders, another $60 billion in SBA disaster loans, $75 billion in grants for hospitals, and an additional $25 billion to increase testing for COVID-19. The funds became available on April 27. On June 5, the Payment Protection Program Flexibility Act was signed into law to address some of the concerns small business owners had about the initial program. The PPPFA includes:
SBA loans became available the week of April 6. Small businesses that are interested in obtaining an SBA loan should call their bank to find out if they are an SBA lender, or they can click here for a list of the most active SBA 7(a) lenders in the United States. To review a sample application, click here.