When the Coronavirus Aid, Relief, and Economic Security Act<\/strong><\/a>, better known as CARES Act was introduced on March 27 2020<\/a>, it was widely expected that it would help American businesses survive the economic outcome of the pandemic, at least temporarily. <\/p>\n\n\n\n The act was truly massive and covered changes and additional funding for healthcare (such as allocating $130 billion to the medical and hospital industries), and provided for a relief to businesses and organizations (largely through the $349 billion small-business loan program called the Paycheck Protection Program (PPP)<\/strong> and an expanded Small Business Administration’s Economic Injury Disaster Loans (EIDL)<\/strong> <\/p>\n\n\n\n It also included the funding for direct payments to individuals who make under $75,000 and married couples with a joint income less than $150,000. <\/p>\n\n\n\n Another big part of the act was the measures to provide $250 billion in funds for unemployment, including an extended unemployment insurance program and expanded eligibility that offers workers an additional $600 per week for four months, on top of what state programs pay. <\/p>\n\n\n\n It also included Tax credits, deferrals, and deductions (such as deferring payments of the employers’ share of social security tax for up to two years).<\/p>\n\n\n\n Today we wanted to look more closely specifically at the financial help currently available to businesses. <\/p>\n\n\n\n Initial guidance<\/a> on PPP was that the loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, <\/em>at least 75% of the forgiven amount must have been used for payroll<\/em><\/strong>). No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.<\/em><\/p>\n\n\n\n The regulation judges forgiveness based on the employer keeping <\/strong>or quickly rehiring<\/strong> employees and maintaining salary levels<\/strong>. <\/p>\n\n\n\n The initial funding for PPP and EIDL was exhausted<\/a> after just 13 days of running the program. <\/p>\n\n\n\n On April 21 and 23, respectively, the Senate and House passed the Paycheck Protection Program and Health Care Enhancement Act to add $320 billion of funding to the PPP. President Trump signed the bill into law on April 24, 2020, which allowed the Small Business Administration<\/a> to accept applications again on April 27.<\/p>\n\n\n\n The new supplement<\/a>, issued by SBA has stated that a replenished program with an additional $310 billion in funding<\/strong> will set aside $60 billion of that amount for loans issued by community financial institutions and certain insured depository institutions and credit unions with limited assets. <\/p>\n\n\n\n This resumed program will continue until June 30, 2020, or until the funds are exhausted again.<\/p>\n\n\n\n With regards to EIDL and EIDL advances of $10K currently the SBA is only accepting applications on a limited basis to provide relief to U.S. agricultural businesses. Many states and cities provide additional support to businesses, such as those listed below, that are currently available as of May 11, based on data available on their websites (subject to change at any given time).<\/p>\n\n\n\n Around 23 million small businesses in the US have no employees<\/a>, they are sole proprietors. They are among those hit the hardest, because they had almost no chance to get PPP or qualify for unemployment.<\/p>\n\n\n\n They or other businesses could find support in some of these small grants provided by large companies and available for small businesses.<\/p>\n\n\n\nPPP and EIDL<\/h2>\n\n\n\n
\n
<\/p>\n\n\n\nState & Local Sponsored Resources<\/h2>\n\n\n\n
\n
<\/li>\n<\/ol>\n\n\n\nOther sources<\/h2>\n\n\n\n
\n