How The CARES Act May Benefit You Blog Banner

March 31, 2020

The US federal government has recently passed a stimulus package (including the CARES Act and Paycheck Protection Program) to help families, individuals, and businesses. Don’t miss this opportunity to get the funding you need to make payroll, purchase inventory, pay your bills, or expand your business. Below is a brief summary of the programs, but we encourage you to follow the links at the bottom to learn more.

Economic Injury Disaster Loans (EIDLs) are loans provided by the SBA (Small Business Administration) to help businesses impacted by disasters. These loans are now available to businesses impacted by the coronavirus. Loans less than $200,000 do not require a personal guarantee. Small businesses are also eligible for a $10,000 grant that will be forgiven if spent on payroll, paid leave, costs due to supply chain interruptions, or mortgage or lease payments. 

The Paycheck Protection Program is part of the CARES Act that is meant to help businesses keep employees on the payroll. A company may borrow up to 2.5 times their payroll expenses (including taxes paid) for the past 12 months. This money may go towards payroll, salaries, commissions, health care. It may also be used for mortgage interest, rent, and utilities.

Unlike other SBA programs, you may apply for these loans without being rejected by other creditors first. These programs apply to self-employed and sole proprietors as well, so these loans may be easier to obtain than traditional business loans. Businesses may apply for both of these programs if they intend to use the money for separate purposes.

Don’t forget that you should also receive $1200 for an individual making $75,000 or less, or $2400 for a couple filing jointly making $150,000 or less plus $500 for children under 17. Individuals and couples making more than these amounts will receive a reduced payments. Deposits should arrive in your bank account by April 17th. 

’76 Webinar – SBA Programs: PPP, EIDL, and SBA Loan Debt Relief (May 5, 2020)

We asked Thomas Yochim, Deputy District Director – SBA St. Louis Office, q uestions about the CARES Act and how to get money to help small businesses. Thomas briefed us on the programs and answered attendee questions.

Want more? Check out the  daily webinar  from the Vermont SBA.