As of March 30: Small Business Relief

This is information compiled from SBA.gov and the actual text of the $2 trillion CARE stimulus package signed into law Friday March 27.

There are three primary forms of relief available to small business through the new CARES law:

1. EIDL: A $10,000 grant (fill out a loan application but you don’t have to pay back the loan) available directly through the SBA. This is technically an advance on an EIDL (Economic Injury Disaster Loan) and the SBA is directed to send these checks within three days of a complete application. Apply here.
2. Paycheck Protection Program: A loan of up to $10 million (the SBA determines how much you receive based on your payroll and expenses) available through the SBA or through a bank using SBA form 7b. Some or all of this loan may be forgivable if the business continues to pay its workers or continues to maintain benefits for workers who have been furloughed.
3. A payroll tax credit of up to $10,000 per employee for businesses who have experienced a 50% loss of revenues compared to the prior quarter. Those who apply for this are not able to apply for the loan forgiveness/grants described above.

Who can apply for grants and loans?

Who can get this benefit? The definition is surprisingly broad. Companies (that is, C-corps and S-corps and LLCs), sole proprietorships, some nonprofits, and even independent contractors are eligible. Companies with more than 500 employees per location are not eligible, but should look to other sections of the CARES act for relief for specific industry groups.

How do I apply?

As of March 29, 2020, the information available at SBA.gov and in the full text of the bill, the process for accessing the $10,000 advance that does not need to be repaid is to apply directly at the SBA website. NABA encourages you to begin your application quickly. Although the government allocated billions of dollars to fund this program, it’s not unlimited and many businesses will be applying.

Businesses may want to wait until Monday and confer with their business banker to see whether it would be advisable to apply through a bank instead.