What is the CARES Act?
Recently, the Senate passed a two trillion-dollar bill, called the Coronavirus Aid, Relief, and Economic Security (CARES) Act, in response to COVID-19’s economic impact. Of the seven main groups receiving support, small businesses are allocated $377 billion in relief funds, including professional services firms. The plan consists of forgivable loan options, tax deferrals, and other types of financial assistance to help businesses overcome the hardships of COVID-19.
How does the CARES Act define a small business?
Companies of 500 or fewer employees.
How can the CARES Act assist my firm?
The CARES Act includes three main benefits for small businesses to retain employees and stay in business throughout the pandemic.
Emergency grants: Individual businesses are eligible for grants up to $10,000 as emergency funds for immediate operating costs.
Low-interest loans: The Small Business Administration has been allocated significant money to lend up to $10 million per company. If workers are employed through the end of June, money from the loan that is used for payroll, retaining employees, paying rent, mortgage or existing debt could be forgiven.
Help with pre-existing loans: For small businesses with existing SBA loans, $17 billion has been allocated to cover six months of payments.
Need help getting started?
If you’re not sure which part of the CARES Act your business best qualifies for, use the questions below to guide you.
- Are you in need of money to help with payroll and retaining employees?
Visit the Paycheck Protection Program on sbc.sentate.gov - Do you need a small amount of money to provide quick relief?
Visit Emergency Economic Injury Grant on sbc.sentate.gov - Do you need to relieve the pressures of keeping up with current SBA loans?
Visit the Small Business Debt Relief Program on sbc.sentate.gov - Do you need free counseling to know more about the right actions to take?
Visit the resource partners on sbc.sentate.gov
Additional Relevant Resources
To further evaluate your options and stay informed with accurate information, visit these CARES Act government resources.
U.S. Small Business Administration
U.S. Senate
U.S. Chamber of Commerce
• Coronavirus Small Business Survival Guide
• Coronavirus Emergency Loans Small Business Guides and Checklist
U.S. Treasury
