- Small businesses, private non-profits, homeowners, and renters experiencing financial losses due to COVID-19 can now apply for emergency financial assistance through the U.S. Small Business Administration (SBA) Disaster Assistance Loans.
Coronavirus Aid, Relief, and Economic Security (CARES) Act passed on March 27, 2020. Here are some of the key programs and initiatives for small business owners:
The Small Business Owner’s Guide to the CARES Act
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 Economc 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.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.
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.