If you own a small business that is suffering from the economic downturn caused by the COVID-19 pandemic, you may qualify for financial assistance through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This federal law, passed in March 2020, provides $376 billion in pandemic relief money for American workers and small businesses — those with fewer than 500 employees. Nonprofit organizations also qualify.
The law provides for two types of loans: Paycheck Protection Program (PPP) Loans to continue paying their workers and Economic Injury Disaster Loans (EIDL) to pay rent, utility bills and other operational costs. In addition, EIDL applicants are eligible for a $10,000 grant for use as working capital.
The application deadline for PPP loans has been extended to August 8, while EIDL applications may be submitted through December.
Here are important things to know about the PPP and EIDL programs:
Although the rules governing these loans are still in flux, the SBA’s goal is to make as much money as possible freely available to small businesses in need. Notably, the SBA has waived the “credit elsewhere test,” which usually requires loan applicants to show that they have pursued other credit resources without success. Also waived is any requirement to secure the loan with real estate or other collateral.
The Law Office of Tania Sayegh Bartolini, P.A. advises small business owners in the greater Fort Lauderdale area. For assistance with PPP or EIDL loans or on any matter related to the CARES Act, call 954-603-1865 or contact us online to schedule a consultation.