• Tue, Apr 07, 2020
  • Coronavirus Aid, Relief and Economic Security Act (CARES Act) Update

  • With the recent enactment of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), there are now more opportunities than ever before for small businesses to find some much-needed economic relief.

    Here's the latest on the COVID-19 business relief programs for small businesses, independent contractors, sole proprietors, self-employed individuals:

    1. Paycheck Protection Program

    $350 billion to support job retention and operating expenses.

     The Paycheck Protection Program creates an emergency loan that can help small businesses retain a full workforce during COVID-19.

    Who is Eligible? 

    •  Small businesses with 500 or fewer employees 
    •  501(c)(3) Nonprofits with fewer than 500 employees
    •  Some 501(c)(19) veteran organizations
    •  Businesses with more than 500 employees that meet the SBA standards for their industry
    •  Sole proprietorships
    •  Self-employed individuals
    •  Independent contractors

    Eligible businesses must have been operational on February 15, 2020.

    How Much?

    Small businesses may apply for a maximum loan of $10 million with no higher than a 4% interest rate. 

    Loan Forgiveness

    If a business continues to pay employees at normal rates for the first eight weeks, then the portion spent on payroll, mortgage interest, rent, and other operating expenses will be forgiven.

    How to Apply:

    You will apply for the Paycheck Protection loan at your local bank.

    View the application here. 

    2. Economic Injury Disaster Loans & Loan Advance

    Economic Injury Disaster Loans are the SBA's low-interest disaster loans given to small businesses experiencing a substantial economic loss due to a disaster.

    Who is Eligible?

    The CARES Act expanded eligibility for EIDLs to all small businesses in the U.S. affected by COVID-19.

    How Much?

    Eligible businesses may qualify for a loan of up to $2 million. 

    Emergency Loan Advance

    You may also apply for an emergency loan advance of up to $10,000. If your application is accepted, these funds would become available within three days and would not have to be repaid.

    How to Apply: 

    Businesses may apply for an EIDL and loan advance here. 

    Can you get a Paycheck Protection Loan and an EIDL?

    Yes, as long as you are not using them for the same expenses. Talk to your financial advisor about the best option for your business.

    3. Business Tax Changes

    In an effort to alleviate the strain on small businesses affected by COVID-19, the CARES Act has made specific changes to taxes and tax policy.  Talk to your CPA/Accountant.

    4. Families First Coronavirus Response Act


    The Families First Coronavirus Response Act (FFCRA) provides assistance to employees affected by COVID-19. 

    As a small business, this means new requirements for paid sick leave and paid family and medical leave (FMLA), as well as employer tax credits.

    Read more about the FFCRA and what it means for small business here.


    5. SBA Debt Relief

    To help small businesses overcome the challenges of COVID-19, the SBA has implemented a debt relief program.

    •  Principal and interest will be paid for six months on current 7(a) loans
    •  Principal and interest will be paid on new 7(a) loans issued before Sept. 27, 2020

    6. SBA Express Bridge Loans 

    With an Express Bridge Loan, businesses may access up to $25,000 to 'bridge the gap' as you wait for your Economic Injury Disaster Loan application to process. 

    •  You must have an established relationship with an SBA Express Lender to qualify
    •  This loan will be repaid through the EIDL