CARES - The Coronavirus Aid, Relief, and Economic Security Act

On March 27, 2020 the President of the United States signed a $2 Trillion aid package to help combat the economic destruction being caused by the widespread coronavirus. This package, Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, is now a law. Among other priorities, the CARES Act provides financial support to small businesses and nonprofit organizations.

Access to this critical financial assistance in a timely manner may be key to your business survival. However, during uncertain times such as these, there are individuals seeking to take advantage of you. Be cautious and only get your information from known sources such as the U.S. Small Business Administration (SBA) or your Small Business Development Center.

One of the programs available now is the Paycheck Protection Program, which was designed to provide direct funding for small businesses to help keep workers on the payroll. One of the unique opportunities with this SBA Loan Program is that it will forgive loans if all employees are kept on the payroll for eight weeks and the money is used specifically for payroll, rent, mortgage interest, or utilities. Please ensure that you use an approved SBA lender.

Another funding opportunity to explore is the Economic Injury Disaster Loan Emergency Advance program. This program provides small businesses with help to overcome the temporary loss of revenue which occurred due to the COVID-19 pandemic. There is great interest in this program which was designed for businesses with less than 500 employees. This program is also for sole proprietors, independent contractors and those self-employed.

According to SBA guidelines, advance funds should be made available within days of a successful application, and this loan advance will not have to be repaid. You can also find additional helpful information from the U.S. Senate Guide to the CARES Act.