Guide to COVID-19 Resources for Small Businesses

The Senate passed the $2 trillion Coronavirus Aid Relief and Economic Security (CARES) Act to provide relief to Americans and businesses during the COVID-19 crisis. The House of Representatives passed the legislation today, now the president is expected to sign it into law.

What’s available under
the Senate bill

• Nearly $350 billion in
  loan funds to help businesses make payroll and cover expenses from Feb. 15 to
  June 30.
• SBA will provide loans
  up to 250% of an employer’s average monthly payroll, capped at $10 million.
• Interest on loans
  would be capped at 4%.
• Loan principal can be
  forgiven, but interest must be repaid. If an employer cuts workers or reduces
  pay, the amount of principal forgivable would be reduced proportionately
• Under this program,
  forgiven debt would not be treated as income.
• Bill waives most of
  the SBA’s paperwork requirements and other prerequisites to get funds to
  businesses faster.
• Keep detailed records.
  Most required paperwork will come later, and businesses will need to document
  that they needed the loans and used them as intended when they apply for debt
  forgiveness.

Loans can be used for

• Payroll support,
  including paid sick, vacation, medical, or family leave, retirement benefits,
  state or local tax, and costs related to the continuation of group health care
  benefits during those periods of leave.
• Employee salaries and
  wages up to a maximum annual rate of $100,000.
• Commissions or similar
  compensation.
• Mortgage payments or
  rent, including rent under a lease agreement.
• Utilities and any
  other debt obligations that were incurred before the covered period.

It does not cover

• Taxes imposed or
  withheld during the covered period
• Compensation of an
  employee whose principal place of residence is outside the United States

Am I eligible?

The SBA generally defines small businesses as fewer than 500 employees. The CARES Act broadens the definition to include companies with 500 employees per location, meaning a Powersports chain with 600 employees across 20 locations could qualify, as many franchisees meet this modified definition.

You can also determine if you qualify by clicking here and entering your NAICS code.

Small business owners
in all U.S. states and territories are currently eligible to apply for a
low-interest loan due to COVID-19.

How do I apply?

Click here to apply for disaster loan assistance from the SBA. If you have questions or issues, you can contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail [email protected].

Borrower requirements

• Business must have been in operation on February 15, 2020, and had employees, paid salaries and payroll taxes (includes paid independent contractors as reported on a Form 1099–MISC).
• Borrower must make a good faith certification that current economic conditions make the loan request necessary to support ongoing operations.
• Borrower must acknowledge that funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.
• Borrower cannot have an application pending for a loan for the same purpose and duplicative of amounts during the period beginning February 15, 2020, and ending December 31, 2020.

Helpful Links:

Who qualifies for SBA disaster
assistance?

Am I qualified as a small business?

APPLY FOR SBA DISASTER ASSISTANCE

Find a local SBA district or regional office for assistance

NEW LINKS ADDED 4/6/20

Economic Assistance Resources

Small Business Resources

Full Senate Bill CARES Act

CARES Employer Paid Leave Requirements

CARES Employee Paid Leave Requirements