The Coronavirus Aid, Relief and Economic Security Act, CARES Act for Small Businesses
Passed by Congress and signed by the President, the Coronavirus Aid, Relief, and Economic Security (CARES) Act tasks the U.S. Small Business Administration (SBA) with overseeing the distribution of millions of dollars in loans and grants to help small businesses survive the COVID-19 pandemic. It also provides additional funding for SBA’s resource partners to provide advice and training to help small businesses respond to the unprecedented challenges in communities throughout the country.
Programs Available
ABOUT
Long-term, low-interest working capital disaster loans for qualified small businesses and U.S. agricultural businesses that suffered substantial economic injury due to COVID-19.
EIDLs are administered and approved directly by the SBA.
FINANCING
Amount: Up to $2 million
Interest and Terms: 3.75% for a term up to 30 years
Collateral: Loans of more than $25,000
Personal Guarantee: Loans of more than $200,000
ELIGIBILITY
Small businesses with less than 500 employees (including sole proprietorships, independent contractors, and self-employed persons), private non-profit organizations, or 501(c)(19) veterans organizations affected by COVID-19 are eligible
Agricultural businesses are also eligible, including those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
FORGIVENESS
The EIDL loan is not forgivable, however, you may apply for an EIDL loan advance, which you do not have to pay back. Applicants may request at the time of application a loan advance of up to $10,000 ($1,000 per employee).
USE
Proceeds may be used to pay fixed debts, payroll, accounts payable, rent, utilities, and other bills that cannot be paid because of the disaster’s impact.
DEADLINE
December 31st, 2020
APPLY NOW
Apply online directly with the U.S. SBA at https://covid19relief.sba.gov
Note: You can apply for both PPP and EIDL—you just can’t use the funds for the same purpose.
Offers three short-term loan options for businesses to maintain operations and keep employees:
Main Street New Loan Facility (MSNLF)
Main Street Priority Loan Facility (MSPLF)
Main Street Expanded Loan Facility (MSELF)
Established by the Federal Reserve and approved through U.S.-insured depository institutions, U.S. bank holding companies, and U.S. savings and loan holding companies.
FINANCING
Amount: $250,000 up to $300 million, depending on the loan option chosen
Interest and Terms:Adjustable rate of LIBOR (1 or 3 mo.) plus 300 basis points; loan term is 5 years
Fees: Origination and transaction fees may apply
ELIGIBILITY
U.S. businesses, with significant operations in and a majority of its employees based in the United States, may be eligible for loans if they were established prior to March 13, 2020 and meet either of the following conditions:
- the business has 15,000 employees or fewer, or
- the business had 2019 revenues of $5 billion or less.
FORGIVENESS
No
USE
Proceeds are designed to help businesses maintain operations and keep employees.
DEADLINE
September 30, 2020
APPLY NOW
Contact a U.S.-insured depository institutions, U.S. bank holding companies, and U.S. savings and loan holding companies.
