What You Should Know About The CARES ACT
During this time of crisis, the federal government has allocated $349 billion in funding to support small businesses. This amount will be distributed rapidly to taxpayers due to the broad economic impact of the virus. Funding is distributed through various Small Business Administration (SBA) programs.
Small Business Administration (SBA) Relief Funding
With the COVID-19 pandemic affecting millions of people and businesses all around the world, the Small Business Administration (SBA) created a number of relief funding options including the Payment Protection Program (PPP) Loan which is designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Small Business Administration’s PPP provides 100% federally guaranteed loans to businesses with up to 500 employees to help support economic activity and keep workers employed.
- The program is designed to provide small businesses access to capital for payroll and other overhead costs.
- Funds are limited and subject to availability from the SBA. Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.
- Download the Paycheck Protection Program Lender Application Form.
- For more information about the CARES ACT and to see if you’re eligible please visit: SBA.GOV
Who Can Apply?
Eligibility for each of the Coronavirus Relief Options varies based on the program.
Businesses affected by Coronavirus (COVID-19) may be eligible for any of the respective programs:
- Wash your hands often with soap and water for at least 20 seconds. If soap and water are not available, use an alcohol-based hand sanitizer.
- Avoid touching your eyes, nose, and mouth with unwashed hands.
- Avoid close contact with people who are sick.
- Stay home when you are sick.
- Cover your cough or sneeze with a tissue, then throw the tissue in the trash.
- Clean and disinfect frequently touched objects and surfaces.
- Teleconference instead of meeting in person if available.
Applications for relief funding programs can be managed through any existing SBA 7(a) lender, or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
We Are Here to Help
We understand that the situation is evolving rapidly and that some of our clients may experience financial stress.
At this time CalPrivate Bank and Private Business Capital relationship managers are available to assist our clients with alternate SBA and business loan options.
CalPrivate Bank and Private Business Capital relationship managers are available to discuss alternate SBA and business lending options, to help our clients find the solution that best meets your unique needs.
Please do not hesitate to contact us. We are here to help.