Coronavirus Aid, Relief and Economic Security (CARES) Act
Congress has approved the largest U.S. stimulus package ever to help provide economic relief to businesses and workers affected by the COVID-19 outbreak. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion economic stimulus bill.
The Federal Government is working diligently on developing the application process for these loans and we will let individuals know that information when it is released and applications are open.
The bill offers the following aid for small businesses (those with less than 500 employees), employees, 501(c)3s, sole proprietors, and independent contractors.
Paycheck Protection Program
The CARES Act allocates $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. The initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
SBA Economic Injury Disaster Loan (EIDL)
Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the outbreak of COVID-19. These loans are intended to assist through the disaster recovery period.
Small Business Emergency EIDL Grants
Small Business Emergency EIDL Grants are direct grants for businesses that apply for but do not qualify for the EIDL program.
For borrowers who already had SBA 7A loans in place before COVID-19, $17 billion is allocated to have SBA step in and make six months of principal and interest payments for all SBA backed business loans.
SBA BRIDGE LOAN PROGRAM
Express Bridge Loan (EBL) Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
EBL loans can only be made by SBA Express Lenders that had a valid Supplemental Loan Guaranty Agreement SBA Express Program (SBA Form 2424) in effect as of the date of the applicable disaster.
The small business must have been operational when the declared disaster commenced, and must meet all other 7(a) loan eligibility requirements.
• Up to $25,000
• Fast turnaround
• Will be repaid in full or in part by proceeds from the EIDL loan
Find an Express Bridge Loan Lender via SBA’s Lender Match Tool or by connecting with your local SBA District Office.
Many of the towns around Summit County have worked to reallocate money from their budgets to help support small businesses during this difficult time. This money is meant to serve as a bridge loan, money to get business through the immediate future until Federal and State dollars are more readily available. Learn more about what each Town is doing to support their local businesses below.