HomeMy WebLinkAboutCARES Flow ChartThe Coronavirus Aid, Relief and Economic Security Act,
CARES Act for Small Businesses
Who is Eligible?
• Any business concern, nonprofit organization, veteran’s organization, or Tribal business concern that employs no more
than 500 employees (or the size standard in number of employees
established by the Administration for the industry in which such
business operates)
• Sole proprietors
• Independent contractors
• Self-employed individuals
Who is Eligible?
How Does the Process Work?
All current 7(a) lenders are eligible lenders. Plus, the Department of
Treasury will authorize new lenders to help expedite the processing
and delivery of capital to small businesses.
How does the process work?
• Eligible applicants who apply for an EIDL may request up to $10,000 be immediately disbursed. The amount need not
be repaid, regardless of the loan decision.
• EIDL borrowers may apply for the Paycheck Protection
Program, but when determining loan forgiveness, the advance EIDL grant is taken into consideration.
How Much?
The size of the loan is 250% of an employer’s average monthly pay-
roll cost during the period Feb. 15, 2019 to June 30, 2019 , capped at
$10 million.
How Much?
A million small businesses are eligible to receive up to $10,000.
How Can I Use It?
• Employee compensation, including: salaries, wages, commissions, or
similar compensation; cash tips or equivalents; vacation, parental, family,
medical, or sick leave; payment required for providing group health care benefits (including insurance premiums); payment of retirement benefits;
and payroll taxes.
• Any compensation or income of a sole proprietor or independent
contractor no greater than $100,000 in one year
• Payment of interest on mortgage obligations, rent, utilities, and interest on
pre-existing debt obligations
How Can it be Used?
• Any allowable purpose under the EIDL program
• Provide paid sick leave, maintain payroll, and meet
increased costs
• Make rent or mortgage payments, and repaying unmet
obligations.
COUNSELING AND
TRAINING
Paycheck Protection
Program
EIDL Grants
What is an Economic Injury Disaster Loan (EIDL)?
A low-interest, fixed rate loan that can provide up to $2 million
in assistance for small businesses that can be used to pay
immediate expenses during an emergency.
What is an EIDL Grant?
The CARES Act creates a new $10 billion grant program,
leveraging SBA’ s Office of Disaster Assistance Infrastructure, to
provide small businesses with quick, much-needed capital.
How long will the process take?
The legislation requires SBA to disburse the funds within three
days of receiving the application.
How can I apply?There are a couple of ways to apply. The SBA has an online
portal where small businesses can upload documents and apply
for a loan, or they can download the PDF on the agency’s website
and mail the forms.
What is the Paycheck Protection Program (PPP)?
A new $350 billion loan program at SBA for small businesses, self-
employed, and gig workers to help them from going under due to the
COVID-19 pandemic. If employers maintain payroll, the loans would be forgiven.
How Can I Apply?
SBA’s Lender Match Portal.
Interested borrowers are also encouraged to inquire with a local
7(a) lender regarding whether they are participating in the PPP.
Why a PPP Loan?
• Employee compensation, including: salaries, wages, commissions, or
similar compensation; cash tips or equivalents; vacation, parental, family,
medical, or sick leave; payment required for providing group health care
benefits (including insurance premiums); payment of retirement benefits; and payroll taxes
• Any compensation or income of a sole proprietor or independent
contractor no greater than $100,000 in one year
• Payment of interest on mortgage obligations, rent, utilities, and interest
on pre-existing debt obligations.
$275 Million for SBA’s Resource Partners and the Minority Business Development
Agency to provide vital mentorship,
guidance, and expertise to small business
owners and entrepreneurs impacted by
COVID-19.
AMOUNT $275 MILLION
HOW WILL GRANTS BE USED?
SBA’s Resource Partners – Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs) –and the Minority Business Development Centers (MBDCs) will be able to expand their reach and better
support small business owners with COVID-19 concerns.
WHAT SPECIFIC TOPICS WILL BE COVERED?
• Provides Assistance with Loan Application Process
• Access risks and prevention of COVID-19
• Handle supply chain disruptions
• Telework
• Protect against cyberthreats
• Handle less travel and foot traffic
• Any other COVID-19 concerns
WHERE CAN I FIND A RESOURCE PARTNER NEAR ME?HERE HERE HERE
The CARES Act tasks the Small Business Administration with overseeing the distribution of millions
of dollars in loans and grants to help small businesses survive the 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.
Small Business
Development Centers
Women’s
Business Centers
Minority Business
Development Centers
• Private nonprofit organizations, small agricultural
cooperatives
• Businesses; cooperatives; ESOPs; and tribal business
concerns with 500 or fewer employees
• Independent contractors
• Sole proprietors (whether or not self-employed)