Coronavirus Aid, Relief, and Economic Security (CARES) Act
The CARES Act was passed by Congress on March 27, 2020. The programs and initiatives in the Act are intended to assist business owners and nonprofits with current needs due to the COVID-19 crisis.
Following President Trump’s signing of the CARES Act, the U.S. Small Business Administration (SBA) and the U.S. Department of Treasury announced a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.
The Treasury and SBA expect to have this program up and running by April 3, 2020, so that businesses can contact a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.
For a comprehensive guide on most of the small business provisions and programs included in the CARES Act, download the Small Business Owner’s Guide to the CARES Act. (https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act)
Paycheck Protection Program
The CARES Act established a $349 billion SBA-backed Paycheck Protection Program (PPP) to provide immediate access to capital for small businesses who have been impacted by COVID-19.
The PPP is specifically designed to help small businesses keep their workforce employed and assist with payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees or SBA fees. All loan payments will be deferred for six months. Most importantly, if employers maintain their payroll, certain portions of the loans can be forgiven, including payroll, interest on mortgage obligations, rent and utility payments.
Loans will be available through more than 135 existing SBA-certified lenders in Texas, including banks, credit unions and other financial institutions.
- Paycheck Protection Program Application #2483 (https://heavy.com/news/2020/04/apply-payroll-protection-program-sba-covid-19/))
- Find a certified lender in your area: SBA’s local assistance finder (https://www.sba.gov/local-assistance/find/?mapCenter=27.438742556454667%2C-98.12812426875&address=78701&pageNumber=1)
- Find out when you can apply: Treasury factsheet (https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf)
- Find more information regarding PPP and loan requirements: SBA.gov/Coronavirus (https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0)
SBA Economic Injury Disaster Loans Update
Due to the CARES Act, small businesses and non-profits can get up to a $10,000 advance on an Economic Injury Disaster Loan even if a previous application was declined or still pending. For more information, visit the SBA’s website (https://www.sba.gov/disaster-assistance/coronavirus-covid-19) and apply for the loan advance here (https://covid19relief.sba.gov/#/)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
The administration soon will release more details including the list of lenders offering loans under the program. In the meantime, the U.S. Chamber of Commerce has issued this guide to help small businesses and self-employed individuals prepare to file for a loan.
Small Business Guide and Checklist: https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
Texas now qualifies for disaster relief with the U.S. Small Business Administration (SBA). Below are updated resources related to what is happening in our business and personal world.
Congressman Van Taylor – Resources for Businesses: https://bit.ly/CongTaylorBusiness
Congressman Van Taylor – Resources for Families: https://bit.ly/CongTaylorFamily
Congressman John Ratcliffe – Resources: http://bit.ly/CongressRatcliffeCOVID-19
Congressman Ted Cruz – Resources: https://bit.ly/CongCruzResources
U.S. Chamber Toolkit: https://bit.ly/USChamberToolkit
U.S. Chamber Small Business Survival Guide: http://bit.ly/USChamberSmallBizSurvive
CDC COVID-19 Resources: http://bit.ly/3aPdtmY
Business Continuity Plan: http://bit.ly/bizcontinueplan
Our businesses and community are experiencing a range of challenges associated with the coronavirus, from employee bandwidth to time constraints – all within this rapidly changing health environment.
While some organizations have procedures in place to handle pandemic situations, others do not. The resource below can help business and community leaders better understand and plan for health situations like the one we’re currently in concerning COVID-19.
- Information from the Texas Department of Healthcare Services
- Information from Collin County Health Care Services
- Information from UT Health
- Local State of Disaster by the City of Princeton
- Information from the CDC
- Disaster Declaration from Collin County
- Updates and Information from Congressman Van Taylor’s office
Resources and Guidelines
- Pandemic Planning from the Department of Homeland Security
- Interim Guidance for Businesses and Employers from the CDC
- Resources for events and mass gatherings from the CDC
- Guidance for Employers from the U.S. Chamber Foundation
- Protecting workers from a pandemic from OSHA
- Guidance for schools – K-12 from the CDC
- Resources for institutes of higher education from the CDC
- Guidance for community and faith-based leaders from the CDC
- Guidance for food industry professionals from the Food Industry Association
- Information for healthcare workers from the CDC
- Information for HR professionals from SHRM
- Downloadable Handshake-Free Zone sign