As many of you may have heard the President signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) into law on March 27, 2020. The CARES Act provides support and aid to businesses during this time of crisis.
One such provision is the appropriation of $350 billion available through SBA loan program known as the Paycheck Protection Program (PPP), to encourage employers to retain their employees. This is apparently first come, first serve with loans becoming available beginning on Friday, April 3rd.
This program is expected to be made available to Sole Proprietors and Independent Contractors on April 10th.
We wanted to make all our clients aware of this program and we encourage you to contact the loan officers at your bank to setup appointments to apply for these loans. Our office will be happy to assist you in obtaining the information that you will need for these applications if needed.
We also want to make you aware of another option which is the Emergency Economic Injury Grants. These grants provide up to $10,000 to small businesses and private non-profits harmed by COVID-19. The funds are available within three days of approval. To access the advance, you first apply for Economic Injury Disaster Loan (EIDL) on the SBA website and then request the advance. The advance does not need to be repaid under any circumstances.
*Please note that any other funds received from EIDL will need to be repaid. You also need to be aware that receiving the emergency grant will reduce the amount you are eligible to receive through the PPP loan referred to above.