The CARES Act Could Save Your Business

Published: March 30, 2020

Overview

The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expands eligibility for SBA economic injury disaster loans (EIDL) and provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL).  To access the advance, you first apply for an EIDL and then request the advance.  The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments.

Eligibility

In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include:

  • Business entities with 500 or fewer employees:
  • Sole proprietorships, with or without employees
  • Independent contractors
  • Cooperatives and employee owned businesses
  • Tribal small businesses
  • Private non-profits of any size.

Additionally, you must have been in business as of January 31, 2020.  Expanded eligibility criteria and the emergency grants are only available between January 31, 2020 and December 31, 2020.

How to Apply

  • You can apply for an EIDL online with the SBA.
  • When you apply, you can request an emergency grant of $10,000.
  • The SBA will provide the grant within 3 days of receiving your application.
  • You will not have to repay the grant, even if your application for a loan is denied.
  • You can visit an SBA resource partner who can help guide you through the loan application process.  You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.

Can I apply for other SBA loan programs?

If you apply for an EIDL and the grant, you can still apply for a Paycheck Protection loan.  However the amount forgiven under a Paycheck Protection loan will be decreased by the $10,000 grant.

More Information

For more information about SBA loan programs, please visit the Small Business Administration.  More information about small business programs in the CARES Act can be found on the U.S. Senate Committee on Small Business and Entrepreneurship website.

If you need additional assistance, please reach out to your local Small Business Development Center or SBA District Office.


Looking for an experienced Wordpress Development company?


 

*this information has been collected from the internet and posted here because I think it is very important for business owners to know. I do not claim that I compiled any of this.

Looking for something specific?

Get A Quote!

SEO Flash Sale

$997 Startup Fee Waived
+
Free Listing Management Upgrade

Check Out Our Portfolio

No matter the industry, we can tackle your web development project at force!

You May Also Like

Types of Marketing: Unraveling the Webs of Marketing

Types of Marketing: Unraveling the Webs of Marketing

There are many types of marketing and in the constantly evolving digital marketplace, understanding the myriad strategies and tactics at a marketer’s disposal is akin to uncovering the masterplan of a labyrinth. Each turn presents a new opportunity for engagement,...

How to Host a Website in 2024: Why You Need Web Hosting

How to Host a Website in 2024: Why You Need Web Hosting

Are you wondering how to host a website? Launching a website is a critical step for any business; it's your digital storefront, your 24/7 salesperson, and your primary means of engaging with a global audience. However, getting your shiny new website live requires more...

Instagram & Facebook Outage Detected

Instagram & Facebook Outage Detected

Facebook and Instagram Are Down. At approximately 10:35 AM on March 5, 2024, social media platforms Facebook and Instagram (alongside Meta's Messenger app) experienced a significant outage with over 505,000 outages reported by 10:48 a.m., sending shockwaves through...