On Friday, March 27, 2020, the President signed into law the CARES Act, which contained $376 billion in relief for American workers and small businesses.  Currently, as directed by the CARES Act, the U.S. Small Business Administration (SBA) is offering several assistance options for small businesses who have been impacted by the Coronavirus (COVID-19) disaster, including but not limited to, the Economic Injury Disaster Loan (EIDL) Advance and the Paycheck Protection Program (PPP). Small Businesses, including non-profits, and Sole Proprietors in all 50 states and U.S. territories are eligible to apply for relief.

The EIDL Advance is economic relief to businesses that are currently experiencing a temporary loss of revenue. It is especially important to note that the EIDL Advance will be a maximum of $10,000, and will not have to be repaid. To apply, business owner’s will need all confidential business information, including gross revenues and COGS for the 12 months ending January 31, 2020 and company bank account details; as well as all contact information for any owner/shareholder/partner of greater than 20%. Visit covid19relief.sba.gov to file your application online.

The PPP is a loan that was designed to help keep workers on payroll. Notably, the loan is forgivable if all employees are kept on payroll for eight weeks and the money is used for payroll, rent, mortgage interest and utilities only. All existing SBA 7(a) lenders and a number of other banks, credit unions, and lenders around the country have been tasked with processing these loans. To apply, business owners need to visit their current business bank’s website to see if they are participating as, unfortunately, most banks have disclosed that they will only assist their existing clients with PPP applications. Visit https://www.sba.gov/paycheckprotection/find to search and contact the national database of participating lenders.

Our firm is happy to assist regarding all CARES Act assistance available. Contact our office today!