(Newswire.net — August 27, 2021) — The Coronavirus Aid, Relief, as well as Economic Security Act (CARES Act) (also recognized as the “Stimulus Act”), which was signed into law on March 27, 2020, includes a program administered by the Small Business Administration (SBA) which might assist smaller companies, non-profits, as well as other organizations that have restricted staff, overlooked payroll, or are merely trying hard to make payroll as a result of COVID-19 (known as the Paycheck Protection Program).
William D King explain how CARES Act helps small businesses-
The measure includes considerable aid for small firms aimed at mitigating some of the harshest consequences of the rapid economic collapse brought on by the coronavirus epidemic. The law includes important measures for small companies seeking short-term funding, such as $349 billion additional loan guarantees from the US Small Business Administration (SBA) and extra money for SBA programs. The measure also calls for the existing SBA 7(a) lending program to be expanded in order to fund the new Paycheck Protection Program.
In summary, the Stimulus Act would offer up to $10 million in government aid to qualified firms to cover a wide variety of business costs incurred until June 30, 2020, without any need for collateral or individual guarantees. Federal aid might be forgiven in full for firms who keep their employees and pay salaries at the same level throughout this time. Register for this loan program at your local bank or credit union; many will be able to help you out.
What does the act say in detail?
As per the bill’s wording, any firm with less than 500 workers by February 15, 2020 (or that fulfills the appropriate industry size criteria as defined by SBA regulations)1 is qualified. Small companies, qualifying non-profit organizations, sole proprietorships, self-employed persons, and self-employed people are all included in this category. 2 If a company employs no more than 500 people at each of its physical locations in the lodging and food services sector, it qualifies. Companies in the hospitality and retail industries, franchises authorized by the SBA’s. As per William D King, the franchise Directory, including small businesses that get funding via the Small Business Investment Firm program, are exempt from the SBA’s affiliate restrictions.
What types of businesses are eligible?
Small companies with less than 500 employees, specified categories of enterprises with less than 1,500 employees, 501(c)(3) nonprofits having fewer than 500 employees, and selected 501(c)(19) veteran groups are eligible for loans via the Paycheck Protection Program. Self-employed individuals, sole entrepreneurs, freelancers, and gig economy employees are also able to apply. Businesses can receive financing even if they don’t have a personal guarantee or security as long as they have been open by February 15, 2020.
COVID-19 continues to have a significant influence on local governments and small businesses. While the CARES Act cannot compensate for money lost as a result of the pandemic, it can compensate for COVID-related consequences. The creation of a small company grant program to cope with these effects would aid both small companies and local governments in their recovery from this extraordinary public health crisis.