New Federal Stimulus Bill Includes Assistance for Small Businesses - Forgivable Loans Among New Benefits

Mar 27, 2020

The federal government is set to issue the largest stimulus package in history to help businesses, workers, families and communities during the coronavirus crisis, including historic relief for small businesses. Called the CARES Act, it includes a provision called the Paycheck Protection Program, which is $350 billion to help small businesses impacted by the coronavirus pandemic make payroll and cover expenses. To learn more about the Paycheck Protection Program, click here. Because the federal definition of small business includes companies with 500 employees or less, this bill can help the vast majority of Economic Alliance member companies, including:

  • Establishing lending programs for small businesses who keep their payrolls steady through the crisis. If employers maintain their payroll, the loans would be forgiven, and can also cover other costs associated with keeping a business open. Federally guaranteed loans will provide eight weeks of assistance for qualifying employers who maintain payroll.
  • Expanding existing government program loans to permit payroll support, including paid sick leave, supply chain disruptions, employee salaries, mortgage payments, and other debt obligations to provide immediate access to capital for small businesses who have been impacted by the virus.
  • Provides additional grants to business development centers for counseling, training and related services for small business owners impacted by the virus.

To see a summary of the small business provision, click here. For specific details on the Paycheck Protection Program of the bill, click here. Guidance on when and how to apply is expected soon.

The CARES Act also includes:


Tags:
Category: COVID-19

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