Guide to CARES ACT Small Business Relief – COVID-19
The coronavirus pandemic is affecting small businesses all across America. Things are changing fast during the COVID-19 outbreak.
In today’s post we’re going to help you navigate this challenging time by going over several ways you can get cash from the Coronavirus Aid, Relief, and Economic Security Act also known as the CARES Act.
Now that the CARES Act is law, what steps do you need to take to make sure you can get money as efficiently as possible.
Let’s go over each of the programs.
Economic Injury Disaster Loans
The SBA’s Economic Injury Disaster Loans (EIDLS) are not new loans, they have been available for disasters. What’s different is this is the first time the program has defined a virus or pandemic as a disaster.
By making this declaration, businesses in every state are now eligible to apply for an Economic Injury Disaster Loan.
Here are the terms in the SBA’s EIDLs:
- Loans up to $2 million
- Repayment term is 30 years
- Interest rates are 3.75% for small businesses and 2,75% for non-profits
- First month’s payment is deferred 1 year from the date of the promissory note
- No loan fees, guarantee fees or prepayment fees
Requirement: You must have been in business by January 31st to qualify. You can’t start a business now and receive this kind of grant.
From the passage of the CARES Act, $10 billion is allotted for EIDLs and $350 billion for Paycheck Protection Loans to help small businesses across the country.
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