Dear eGlobal Affiliates and Partners,
The federal Coronavirus Aid, Relief and Economic Security Act passed by Congress and signed into law by President Trump, also known as the CARES Act, offers major financial support for companies impacted by the coronavirus pandemic. Here are a couple of highlights from that bill that you may find helpful:
Economic Injury Disaster Loans and Loan Advance
Any small business owner in the U.S. is eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
Paycheck Protection Program
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this program:
- Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
Below are the links to the SBA website where more information can be found.
eGlobal strongly encourages our partners and affiliates who’ve been impacted by the COVID-19 pandemic to take advantage of these programs.