Editor’s Note: Heather Maxwell, Executive Director of the Anthem Area Chamber of Commerce, provided to members today the following overview of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). It is republished here with Maxwell’s permission.
I’m happy to bring you good news that relief is on the way. Earlier today, Congress approved the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide financial assistance to individuals and businesses, and President Trump has since sign that into law. There is TREMENDOUS relief to American families and individuals in the CARES Act. I have attached a PDF [click here for the PDF] Small Business Guide and Checklist for Coronavirus Emergency Loans, prepared by the US Chamber of Commerce. This should answer a lot of your questions until the Treasury and SBA release additional guidance on the loan process.
I participated in an SBA Small Business Roundtable this morning and just wrapped up a phone call with Senator McSally and I wanted to relay a few important pieces of information.
These ARE NOT the same Economic Injury Disaster Assistance Loans as posted on the SBA.gov website.
The CARES Act amends the Small Business Act (SBA) to create a new Business Loan Program category. For the period from February 15, 2020 to June 30, 2020 (covered period), the law allows the Small Business Administration (Administration) to provide 100% federally-backed loans up to a maximum amount to eligible businesses to help pay operational costs like payroll, rent, health benefits, insurance premiums, utilities, etc. Subject to certain conditions, loan amounts are forgivable (see more detailed discussion on loan forgiveness below).
The loan application, requirements, and process ARE NOT YET posted to the sba.gov website.
The Treasury & SBA have 15 days to get this new program fully up and running. They hope to have the program up by the end of next week. The goal turn-around time for loan processing is 36-48 hours.
It is recommended that you reach out to your preferred lender to notify them you are interested in applying for this new loan program so they can alert you when they receive the final guidance from the Treasury & SBA.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
Who is eligible? Probably you.
If you are a small business of less than 500 employees, sole proprietor, self-employed, non-profit or independent contractor who has been impacted by the Coronavirus crisis, you will probably qualify.
The administration will soon release more details and guidance on the program.
I will pass along new information as it becomes available. I think this website provides a good overview of the provisions in the CARES Act. It’s 880 pages long… happy reading!
In the meantime, you can check these sites for information and updates:
- Arizona Department of Economic Security
- Small Business Administration Arizona District Office
- U.S. Small Business Administration: Coronavirus (COVID-19): Small Business Guidance & Loan Resources
Have a great weekend everyone! Stay well!