Coronavirus Crisis: Support For Small Businesses
More Than $375 Billion in Small Business Relief
The CARES Act provides more than $375 billion in small business relief, including $349 billion for forgivable loans to small businesses to pay their employees and keep them on the payroll; $17 billion for debt relief for current and new SBA borrowers; and $10 billion in immediate disaster grants.
These loans to small businesses will be 100 percent guaranteed, low-interest, no-fee loans of up to $10 million with repayment deferred for at least six months. The loans would also be forgivable up to 100 percent of the loan amount if the borrower has retained the same number of employees as when they received the loan.
Under the debt relief program included in the CARES Act, current and new Small Business Administration (SBA) borrowers, would be eligible for SBA-backed loans where SBA will pay the principal and interest for the next six months.
Under the immediate disaster grants included in the CARES Act, SBA can provide up to $10,000 to applicants within 3 days of applicants self-certifying they are eligible.
The House Committee on Small Business has put together a summary of the CARES Act detailing all of the bill’s provisions related to small businesses relief and assistance.
The U.S. Small Business Administration has a web page, located here, that details how small businesses can access these relief programs.
The California Small Business Development Center (CSBDC) has put together a detailed publication, located here, covering how small businesses can apply for COVID-19-related loans and fill out required forms to access assistance.
The CSBDC has also put together an extensive publication, located here, covering many COVID-19-related issues for small businesses including help with Economic Injury Disaster Loan, Employment Development Department guidance for business owners and employees, business interruption insurance, and many other topics.
On April 9, 2020, I held a telephone roundtable with small business experts who spoke on assistance and relief programs available to Orange County small businesses. You can see details of the event, find links to resources mentioned during the call, and listen to a recording of the entire event by clicking here.
The US Small Business Administration (SBA) to provide up to $2M in Disaster Assistance Loans to businesses impacted by COVID-19. Learn More